New-York tribune., 1906-12-14
THE COST OF ARMOR PLATE.

Several months ago, In compliance with
resolution adopted by Congress- the Secretary
of the Navy appointed board to consider
what It would cost the government to make its
own armor. The report the subject, of which
an abstract is printed In The Iron Age" this
week, derives additional interest from Mr.. Bona
oarte's recommendation that the Navy Depart
ment be authorized TO establish the necessary
works if the manufacturers should attempt to
raise their prices
Concerning the expenditure for a factory
the board accepts the figures which another
commission supplied about ten years ago.
These indicate that the government could erect
suitable buildings and install the proper ma
chinery for about 100000. This estimate
includes no allowance for land, but 1t is evil
dent that the total investment would be less
than that made by private manufacturers, the
companies owning plants at South Bethlehem
and Pittsburg having asserted that they cost
So. .625,Oo0 and nearly S6,0OO,0OO. respectively.
Neither Of these manufacturers nor their
rival, the NIidvale Company, would afford any
information about the cost of production, but
one of them gave TO Mr.. Bonapartes repre-
sentatives a formula by means of which
computation which is deemed satisfactory was
made possible. This apparently embraced all
the various items Of expense which deserve con-
sideratOn. The conclusion is therefore drawn
by the board that the government could make
arnor plate less than five inches thick for S213
a ton, and plate exceeding that limit for S297.
AT present, private contractors are getting S346
a ton, and there is fair presumption that if
the government should establish its own works
it could save $50 a ton 1t is also thought rea-
sOnable 10 suppose that the Carnegie, Beth
lehem and Midvale companies are making a
profit OF fully Il per cent on their products,
nd
tors received something like $40 a ton their
profit was scarcely less than 90 per cent.
From the report recently made TO Secretary
BOnaparte it appears that the reduction in
price, which resulted a year or two ago from
genuine competition puts this country in q
relatively fortunate position The United States
now pays 1916 ton, Japan S4O0, Austria and
Germany $3.50, Italy SOL France SJ69 and
England $626. What proportion of these sums
represents actual cost there is no means OF
determining. Steel can be made more cheaply
IN the United States than anywhere else in
the world, but it is credible that foreign manu-
facturers Of armOr plate are netting from $50
to $3.50 q ton
Secretary BOnaparte recommends two dis
tinct methods of obtaining relief in case Amer
lean manufacturers should combine to raise
prices. He would like to see the privilege of
buying plate abroad, we'll as the power TO
erect It's own works, given TO the Navy De
parment 4 larger freedom would be enjoyed
II both opportunities were open than if the
government limited 10 the scheme for q
plant Of its own, but TO the idea of going 10
Europe for armOr the figures just quoted lend
little encouragement though it is possible that
III the hope OF securing further business some
foreign manufacturer might offer to supply
the United States for a time at loss The
acceptance of such a proposition would put the
government under no obligation to buy plate
on less advantageous terms thereafter, and one
such transaction would probably be an effec-
tive rebuke TO anything which resembled ex-
JOrtiou.