Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1906-07-14
SATURDAY EVENING. JULY IA. 1906.

having the approval, il not actually
directed by President Roosevelt, the
Bethlehem and Carnegie Companies are
each awarded one.fourth of the work,
the Midyale Steel Company, Of Philadel-
phis, getting the other half. The Gar
nepie and Bethlehem companies, how
ever. share in the contract only upon
condition that they cut their price TO
sS46 per ton, which was the price asked
nv the Midyals, the lowest bidder. The
announcement of Mr.. BOnsparte caused
no great surprise, the belief being gen.
eral that even he, with all his boosted
courage and independence, would scarcely
dare to throw down the steel trust COM
pletely. This belief became almost
certainty when it was known that Oys-
fer Bay was interesting itself IN favor
of the Carnegie and Bethlehem concerns.
The Midvale company, the lowest bid
der, was badly treated for it should have
been given the whole contract. The
main argument of the steel trust officials
was that the two plants, Carnegie and
Bethlehem, would have to close down
unless they were awarded share OF the
work. and that hundreds OF working
men, with dependent families, would SUI
fer. The press of the country had con-
siderable fun over this remarkable argu-
ment. remarkable as coming from the
billion. dollar steel corporation, but Sec
rotary BOnaparte, in statement Issued
Yesterday afternoon, says he took the
argument seriously, and that this reason,
aud the further one that ii would be bad
policy to allow the supplying of armor
plate for the government to be controlled
by one concern, induced him to divide
The contract so that the srmor for one
vessel should De supplied by the irdePend-
ent corporation, and that for the other
be furnished by the two companies COM
posing the trust. 10 commenting on the
award of the contract the Philadelphia
Record says
It is difficult to discover the rationale
of the decision to divide the armor-plate
contracts between the Midvale Steel
Company and the Observation-Disclosures
double back-sctiOE combine. The gov
eminent invited bids for the plate, and
the presumption arising from such inVi-
tation was that the lowest bidder would
get the award. OF course, this pre-
sumption was subject to the quail
fcstiOns that the low bidders ability
to produce armor of the quality re-
ouired should not be in doubt and that
he could comply with the other specih-
cations rs to time Of delivery, etc. As
10 the first condition there was no room
for doubt; Midvsle ship armOr has been
used by the government and has with
stood the severest tests. Touching the
ADEQUACY of the Midvsle Company
plant nothing need be said except that
the concern has not defaulted IN the
making of deliveries within the time
promised under previous contracts and
is prepared to put up substantial sum
af money as forfeit in case OF failure.
1t has been claimed by the trust that the
great expense of putting up the plants at
Bethlehem and Homestead was incurred
under au implied agreement that the
government (which was the only prOba-
BILE employer would keep them fully oc-
cupied; but by implication the trust on
its part undertook to supply the armor at
responsible price, For many years the
trust exploited its practical monopoly by
extorling the exorbitant price of $500 or
more ton for its products. Only by
she threat of Congress to erect govern
ment armOr plate shop unless the mate
rial could be obtained 10 the market at
$400 influenced the trust 10 reduce It's
price to approximately the hgure named.
Now comes a competitor, who, without
preconc ertion, asking no favors and on
his own risk, put up plant; and, after
pelfecting its processes and becoming
satisfied that it conld supply armOr of
Ghe quality used in the naval service,
the competing concern from the out
start underbids the trust by 80 per cent
0r more. / there be profit enough in
.he business to warrant the taking of all
these chances what regard should be
shown for the winnings of the trust?
But to leave the tTust bare OF contracts
would be to compel it 10 close its shops;
its skilled workingmen wonid become
scattered, and an industry would be de- |
stroyedl This argument seems o have pre- |
vailed with the administration. Stripped |
OF the subte5luge that quicker deliveries
could be secured by dividing the con- |
tracts, Secretary Bonapsrte's excuse for |
doing so is a mere expression of psternal
concern for the future OF the trust. O0e
may be permitted to doubt, hogever,
that the, trust's plants would be dismsn.
tied if it should get no government pap
for little while TO come and period
of reflection on the enormity Of monOp
Olislic extortion might have proved
wholesome discipline for it. When bids
should next be advertised for the trust
might have been found in mood ir
honest competition. In this way the
interests of the government would have
been better served than they have been
by the psterusllstic sOlicitude OF lhe
administration for this monstrous off
spring of prOtectiOnism. One is forced
- the conclusion that while the admin
lsirsuon detests trusts in the abstract it
Is wonderfully fond of than in The con-