Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-07-13
DIVIDED THE AWARD
Contract for Armor Plate to Be
Split Up.
MIDvALE WILL GET HALF
Carnegie and Bethlehem Companies to
Have the Rest.
EXPLAINED BY THE SECRETARY
Thinks Interests of the Service Will
Be Best Promoted by Such
an Arrangement.
MIDVALE WILL GET HALF
EXPLAINED BY THE SECRETARY

| 1924 tons of the improved face-hardened
| armor of the best material and of domestic
| manufacture for the battleships South
Carolina and Michigan. He divided the
| entire contract between the Midvale Steel
Company of Philadelphia, an independent
| corporation, and the Carnegie Steel Com
pany and the Bethlehem Steel Company
J constituting the so-calIed steel trust the
| former company to supply the entire armor
for one ship and the two other companies to
supply the armor for the other ship
| These awards are all based on the bid
| submitted by the Midvale Company for the
entire amount of armor, viz S345 a ton the
Bethlehem and the Carnegie companies
agreeing to supply their share at that rate.
The official bids of the Carnegie and Beth
| lehem companies were 1870 and 1881 a ton,
| respectively.
Secretary Bonaparte's Statement.
Secretary Bonaparte issued the following
statement this afternoon in explanation of
| his action:
The act governing the award Of contract
| for the armor for the battleships South
Carolina and Michigan contains the follow
| ing provision:
Armor and armament-Toward the
armament and armor of domestic manufac-
| tuiS 1Ci NcSSSlS SlO, ,l40OuO, pTO-
vided, that no part of this appropriation
shall be expended for armor for vessels ex-
cept upon contracts for such armor when
| awarded by the Secretary Of the Navy to
| the lowest responsible bidder, having in
| view the best results and most expeditions
| delivery.
| This provision makes it illegal for the
government to use the appropriation in
| forbids the purchase of armor abroad.
| American armor plants must, therefore,
| furnish all the armor to be paid for out of
i the appropriation in question. OF these
! plants there are but three, known as those
OF the Carnegie Steel Company the Bethie-
| hem Steel Company and the Midvale Steel
| Company respectively. All of these COM
| paEies submitted bids for the armor needed
| in the case of the above mentioned two
| battleships. The bid of the Carnegie COM
pany amounted in the aggregate, to s., 732, =
| $50; that of the Bethlehem company to
S2,S13, 56S; and that of the Midvale COM
pany to s., ,555 470. The aggregate quantity
| of armor to be delivered is 1888 tons. divid-
! ed among four classes. The bid of the
| Midvale company is the lowest, not only in
the aggregate, but for each one of the four
| classes All of the bids, however, are low
| er than any price heretofore paid by the
| government for the like armor and lower.
| so far as the department is informed, than
| Is paid by any foreign government.
| Would Have to Stop Work.
'The department is advised that both the
| Carnegie and the Bethlehem companies will
| be completely out of work for their re-
| spectve armor plants within a short time
| unless they obtain some portion of this
contract. and that the plants in question
| will be unavoidably shut down and the
| foroe therein employed discharged and
| scattered in the contingency mentioned
| This statement seems to be admitted as
| true by all parties interested The contrac-
| tual relations of the government with the
| Midvale Company have been hitherto salts
| factory. but some doubt has been enter
| tained as to Its ability to comply with its
| existing contracts. and 1t Is, in fact, slightly
| behind the time originally fixed In It's deliv-
| cries. although the evidence before the de-
partment does not justify the statement
| that 1t cannot comply with the terms of
| contract to manufacture and deliver the
| whole of the armor in question, and it AYERS
| and offers to guarantee its ability SO to do.
| The Secretary Of the Navy is convinced
| that the best results would be attained in
this case and the most expeditions delivery
| OF the armor in question would be secured
| If the contract were divided between the
| three bidders 1t seems to him clear that
| 1t would be against public policy and the
| best interests of the naval service, and
| more especially, would seriously affect the
| assurance OF good results and expeditions
| delivery of materials under this particular
| contract, II the government were to find
| Itself obliged to trust to single armor
| plant to supply it's needs all American
competitors having retired. at least tenn
porarily. from the business, and the pur-
| chase of armor abroad or it's manufacture
| by the government itself being at present
| forbidden by law.
| Division of the Contract.
| ''The Carnegie and Bethlehem companies
| are willing, and have offered to reduce
| their bids to that of the Midvale Company,
and to take. at the prices thus fixed by
their competitor, any portions of the con-
frac -,
1t seems clear to the Secretary of the Navy
| that, in the exercise of the discretion re-
posed in him by the act. 1t will be advisable
| to divide the said contract assigning one
| half thereof to the Midvale Company at
its prices. and one-fourth thereof. at the
| same prices, to each of the two other COM
| panies. 1t being his judgment and belief
that, to attain with certainty the best re-
suits and most expeditions delivery. the
| MidvaTe Company should be properiy as
signed one-haif OF the contract. but no
| more. and, II practicable. at the same
prices. the other half should be assigned to
its two competitors.
| The department has felt in this case
| very serious concern by reason Of the Ian
| guage Of the provision requiring all con-
| tracts TO be awarded to the lowest respon-
! stble bidder. If these words stood alone
| the department would hesitate to take ac-
| ton which might be construed as amount
| ing to finding on its part that the Midyale
| Company is not a responsible bidder but
II thinks the qualification as to RESPONSE
| bility must be read in connection with the
| further language of the proviso having in
| view the best results and most expeditions
delivery 1t holds the Midvale Company to
| be the lowest responsible bidder, having In
| view the aforementioned ends prescribed
by Congress, to the extent Of one-half of
the present contract, and II awards one
| fourth thereof to each of. the two COM
peting companies. their bids having been
| reduced to the figures Of the Midvale Com
pany, as next entitled. and equally entitled
relatively to each other, under the terms
of the law, with view to the best results
and the most expeditions delivery.
IT Is therefore ordered that the contracts
be awarded as nearly as possible in accord
ance with the terms OF this memorandum
CHARLES ]. BoNAPARTE.