The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-07-14
ARMOR PLATE WORK
IS To Be DIVIDED
Carnegie and Bethlehem will
Get Slice
MIDVALE LOWEST BIDDER
Bonaparte Decides, However, to Allow
Higher Bidders to Take Half at
Price of the Lower
Bid

Washington. July 13.-Secretary Bona
parte announced today that the Carnegie
and Bethlehem Steel companies will be
given the contract for the armor of one
of the new 1600O-ton battleships at the
price named by the Midvale Steel conn
pany in their bid. The contract for the
armor for the other battleship will go to
the Midvale company. The Carnegie and
Bethlehem companies are to share equal
ly In the contract given to them.
Secretary Bonaparte made the following
statement concerning the award
THE act under which the award is
made contains the following provision:
Armor and armament-Toward the
armament and armor of domestic manu-
facture for vessels authorizing SIS, 145, 600;
provided that no part of this appropria-
tion shall be expended for armor for YES
sells except upon contracts for such ar
NOR when awarded by the secretary of
the navy to the lowest responsible bidder,
having in view to the best results and
most expeditions delivery.
Cannot Purchase Abroad.
DTONlSlO0 HldkeS II llltBdl lOE lIlt
government to use the appropriation in
the manufacture of armor itself, and like
wise forblds the purchase abroad Ameri-
can armor plants must therefore furnish
all the amor to be paid for out of the
appropriation in question.
"Of these plants there are but three
known as those of the Carnegie Steel
oop,Dapy tho pathIahano Steel comnaOv
and the Midvale Steel company, respect
lively. All three of these companies sub
mitted bids for the arISlor needed in the
case of the above mentioned two battle
ships. The bid of the Carnegie Steel COM
pany amounted In the aggregate to 81
732 $50; that of the Bethlehem company
to $2S13,56S, and that of the Midvale COM
pany to 1855, 40. The aggregate quantity
of armor to be delivered is 1888 tons
divided 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, how
ever are lower than any price heretofore
paid by the government for the like ar
NOR, and so far as the department Is in
formed than Is paid by any foreign gov
eminent. The department is advised that
both the Carnegie and the Bethlehem
companies will be completely out of work
for their respective armor plate mills
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 force therein en-
ployed discharged and scattered in the
| contingency mentioned.
Doubt as to Liability.
This statement seems to be admitted
| as true by all parties interested. The
| contract regulations of the government
! with the Midvale company have hitherto
been satisfactory but some doubt has been
entertained as to its ability to comply
with it's existing contracts, although the
evidence before the department does not
| justify the statement that 1t cannot COM
| ply with the terms of a contract to man.
ufacture and deliver the whole of the
armor in question, and 1t AYERS and Of
| fers 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 was divided
between the three bidders. 1t seems to
|
lie policy, and the best interests of the
naval services and more especially would
| seriously affect the assurance of good re-
| suits and expeditions delivery of mate
| rails under this particular contract If
| the government were to find itself obliged
| to trust to a single armor plate mill
| to supply it's needs. all American COM
petltors having retired at least Temporal
| rily from the business, and purchase of
| armor abroad or its manufacture by the
| government itself being at present forbid
den by law. The Carnegie and Bethlehem
| companies are willing and have offered
| to reduce their bids to that of the Mid
vale company. and to take at the prices
| fixed by their competitor any portion
| of the contract which may be assigned
| to them, and ii seems clear to the Sec
| retary of the Navy that in the exercise
| of the discretion reposed In him by the
| act it will be advisable to divide the
| said contract. assigning one-half there
! of to the Midvale company at Its prices.
| and one-fourth thereof at the same prices
| to each of the two other companies. 1t
| being his Judgment and belief that to
| attain with certainty the best results, and
| most expeditions delivery, the Midvale
! company should be properly assigned one
half of the contract but no more, and
| If practicable at the same prices the
| other half should be assigned TO its two
competitors.
Very Serious Concern Felt.
1.-THE department has felt in this case
| very serious concern by reason of the
language of the provision requiring all
contracts to be awarded to the lowest
responsible bidder If these words stood
alone, the department would hesitate to
A.. L. ,lxrl1f hA 90 n :
amounting to a finding on its part that
| the Midyale COMPANY is not RESPONSE