Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-08
COST OF ORDNANCE.
Gen. Crozier on the Advantages Of
the Government.

General Crozier chief of ordnance of the
army, says he is prepared to demonstrate
that in certain lines of manufacture the
government can do the work for less than
1t can be done by contract. In special
report on the subject he gives table
showing the contract price and the arsenal
cost of various ordnance manufactures of
recent years, with the evidence decidedly
In favor of the government workshops.
The table includes eighteen articles Of ord
nance, such as guns, carriages, caissons,
range finders, cartridges, shrapnel, fuses,
etc, and except in two cases. the arsenal
cost was less than the contract price. The
exceptions were caissons, model OF 1902,
and the five-inch barbette carriage model
OF 1903. In some OF the cases where the
government cost was less the contractors
claimed that their own price was SO low
to cause them a loss.
These figures are given as the result OF
a system of accounting adopted by the ord
nance department many months ago to de-
termine accurately the cost of the different
articles manufactured for it. the cost in
Guiding besides the indirect shop expenses,
proper percentage TO cover the pay of the
officers and enlisted men of the establish
ment, the general repairs and improve
ments to buildings. the clerical expenses,
deterioration and in general all those ex-
penses which a private manufacturer must
take into account except profit
I'm comparing government manufacture
with that at private establishments said
General Crozier certain advantages char
sctcriZe each method. The private manu-
facture is not restricted to eight hours OF
labor per day; this may may not be an
advantage, but there is no doubt of the
advantage resulting from his relief from
the necessity for paying for fifteen days
of vacation per year, for seven national
holidays and for Saturday half-holdays
during the summer months.
The time for which the government pays
IN this manner, without return in labor
amounts TO 10 per cent of the working time
OF the year. On the other hand the govern
ment has right to charge a less interest
yate on the value of its plant, because its
better credit enables 1t to borrow money
mt less rate. Its losses by fire are also
limited to those actually incurred instead
of being obliged to carry the load" in
volved In the machinery of conducting in
surance companies and the dividends &c
stockholders. Its high-class superin-
tendence is also less literally paid and the
deterioration of plant, like the insurance
II only that actually incurred, instead OF
Being an amount which the manufacturer
Rust often make large in order to cover
himself against lack of future orders
but which he rarely diminishes when the
real cost of his plant has been actually
severed. Added to all else Is the profit
which the manufacturer will of course
make as great as the conditions OF industry
allow. 1t is sometimes claimed that the
private manufacturer has stimulus spur
ing nm TO enort TO reduce cost by i'm
proved methods and close supervision
which is lacking in a government estab
hshment. There is no necessity for thu
lack in government establishments, IL tn,
career of the officers is made to be af
fected by their conduct of them; and Their,
~ the same possibility as in private es
Adjustments of reward to employees fo
valuable suggestions. Success in diminish
ing private cost does not by any means sig
nify lower prices to the government. bu
rather greater profit to the manufacturer