Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-26
CAN GET FOREIGN MATERIAL.
An Opportunity That Is Welcomed
by the Navy Department.
the ARMY and NAVY Register

from the Army and Navy Register.
significant statement occurs in the
annual report of the solicitor of the Navy
Department, who anticipates great ben
efits from the operation Of that part Of
the new tariff law which authorizes the
| importation to this country, free of duty.
material to be used in the construction,
equipment and repair OF vessels. The
Navy Department is already taking ad-
vantage of this situation by. placing with
foreign firms contracts for material in
tended for use in connection with naval
vessels. Some such provision in modified
form was incorporated in section OF
the Panama canal act of 1911, and 1t
was then foreseen that that statute would
be of benefit to the navy. but the law was
In effect so short a time that it's full
possibilities were not determinable.
The new tariff law by which TIE Pan
anna act was superseded is much broader
In scope and, according to the solicitor
of the Navy Department, will benefit
the naval establishment more generally
to what extent, however 1t appears to
De too. early to estimate the benefits
and the solicitor entertains no doubt. will
more than offset any increase in cost and
expenditures resulting from the opera
ton of the eigh-hour law, which, it was
anticipated, would discourage bidding for
naval contracts. On the contrary, COM
petition since tie enactment Of the eight
nour law of June 10, 1912, has been las
keen as ever" again quoting the solicitor,
and mo difficulty on account of that
statute has been experienced in placing
contracts" The naval authorities. If the
solicitor may be regarded as expressing
departments sentiment. believe that
contract prices will before long begin to
show very considerable decreases, other
Things being equal, compared with those
of the past" That the full benefit OF
this new law may be determined, it Is
now suggested that a system Of account
| ing be. put in Operation that will keep
| track of all imported material bought by
the Navy Department that has been used
| in such manner as to bring it within the
operating benefits of the law.
| In other words, the naval authorities
! anticipate that the contracts for naval
material will be awarded to foreign firms
| to such an extent that contract prices in
general will be materially decreased, OPP
| eratings of course, as a saving or the
| showing of a saving in the cost of certain
! parts of the naval establishment. If this
! means anyt ing, it means that the Amer
| lean contractor will be crowded out of
| the competition or he must enter the lists
prepared to defeat the foreign bidder.
| This can evidently be done only by re-
| duction of wages and other forms of de-
| crease in the cost of the production of
| the domestic material. 1t is surprising
| that the contracts which have already
| been awarded to foreign firms have not
| led to a protest at home, for under the
terms of the law certain material enter
| ing into the construction. equipment and
repair of shiIs, naval and private. may
| be imported into this country without
| the payment of duty. For years Congress
has protected the American producer on
| the theory that there should be encour-
agement of domestic sources of supply.
| The administration is now in the atti-
/ tude of not only seeking the markets of
1 he he nf ha rrn6
| ucts. but is going after foreign material
whenever it may be obtained at prices
| less than that for which the American
article is obtainable. 1t is, taking it all
/ in all. an interesting situation, and one
| wonders that there has not been more
discussion of this new development