The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-05-22
"Intolerable Conditions"
Are Brought About by
Connivance.
BIDS FOR ARMOR
PLATE FARCICAL
Secretary Daniels Tells How Con
tracts Are Divided at Rate of
Lowest Bidder in Manner
Which Amounts to Subsidy
OF Trust Plants-Now
Preparing Statement.

Washington, May 21-Responsibility
tor price agreements among manufac-
turers furnishing armor plate for
American warships was placed directly
upon the Navy Department itself to-
oay by Secretary Daniels. In state
ment following his announcement YES
'erday OIL intention to submit plan for
government armor plant, the secre-
tary declared the policy OF the depart
mont IN dividing pla,e contracts among
an bidders at the lowest figures offered
MAKES all pretense OF competitive bid
dins TO get the lowest market price a
farce that cannot possibly deceive any
one acquainted with the facts"
Mr. Daniels said no was glad the
resolution for an investigation of this
mater introduced recently by Senator
Ashurst was before Congress. and that
1t only anticipated formal statement
which he proposes 10 prepare request
Ing relief from IAN intolerable situa-
ton"
BIDS Are Identical.
How contracts for armor for the
new battleship Pennsylvania were let
by Secretary Meyer list March was told
In detail In the statement. Three steel
companies submitted virtually identi-
cal bids, and tho contracts were di-
vided among them. IF we are going
to subsdize the Carnegie Midvale and
bethlehem companies" said Secretary
Daniels, so as to have the advantage
OF their armor plants In time Of war,
tnen let us do SO honestly, in manly
fashion, by statute. without conceal
nent or attempt at hypocriticaI evasion
OF the intent OF Congress TO force com
petition and to award contracts TO the
lowest bidder. II we are, on the other
hand, going TO honestly award our con-
tracts to the lowest bidder, let us do
So"
The bids for the Pennsylvania armor
were opened, the statement continued.
after the publication of a notice, one
inch long. in the smallest type. in one
paper only, the Philadelphia Item. that
sealed proposals would be received at
the Navy Department at ~ o'clock
noon February is. with no hint of the
amount and only four weeks in ad-
vance of the date ror receiving the
bids.
1T would be natural" the statement
continues. "to suppose that the lowest
bidder would receive the award, but
such was not the case. nor has it been
the case for long time past and
mere Is where the whole trouble lies.
On the theory that all three companies
must be encouraged to maintain their
armor plate departments the contract
was arbitrarily divided among them.
All lH9ee companies agreed TO price
of asa per ton for class A. armor.
Under the circumstances am surprised
at the moderation OF the bids don't
see that anything but modesty or fear
OF congressional investigation keeps
them from putting In, say. 500 per
ton as their lowest bid"
Frank About Bidding.
The secretary made public two let
ters which he received from companies
which submitted bids for the Penn
sylvania contract because he said they
were so remarkable for their frank
ness and SO completely illustrating
from their own words the evils or the
situation.''
The Midvale Steel Company. of Phila-
delphia, wrote:
1T has been the custom to divide IN.
work between the companies at the
prices OF the lowest bidder after ask
ing the other companies if they would
accept the work at this price: this
method being deemed expedient BY the
department. On subsequent bids for
similar material II was but natural
Tor the competing companies to bid
the price set by the previous diyided
order"
The Bethlehem Steel Company OF
South Bethlehem. Pa, told practically
the same story.
Concluding his statement, Mr. Dani-
els commented on the fact that the
bids for the Pennsylvania armor were
s per cent higher than the price OF the
last previous armor made.