The Birmingham age-herald., 1913-07-15
Report Submitted to Con-
gress Shows Over Million
Would Be Saved
CONGRESS ASKED TO
LOOK INTO MATTER
Explains France, Italy and Russia
Have Found Relief From High
Cost of Plate by Having Own
Plants-Reviews Situation

Washingtonk.s 14-Naval experts
figures show = nat government
armor plate ry. costing IS, 100000,
would saw 2 3 ton on armor, or
more thar o'a $4,000 net year. We're
submitted < > congress today by secre-
tary Da os The secretary's report
was SCI response to Senate reso-
luton supplemented previous
statements issued by him advocating
a government owned armor plant.
Millions Saved Annually
Millions can be saved either by op-
Grating a government plant. or by com
pelling competition among the private
manufacturers Mr. Daniels declared.
Therefore, he asked Congress to make
a full, thorough and early investiga-
tion of the cost of an armor plate fac
tory, and the cost of manufacturing
armor plate in factories owned by con-
Germs dependent upon government pat
ronage."
Reviewing the situation in his re-
port, the Secretary said the accepted
plan had been that the Bethlehem. Car
negie and Midvale plants should be
given the armor work at practically
their own prices.
This step having been taken" he
said, ut clearly follows that the manu-
facturers themselves, convinced that
one third of the work is coming to
them without much reference to the
price they may bid, have not over
looked the advantage of putting in bids
practically of the same figure and at
the same rate. They have argued that
should one of them put in a bid much
lower than the others, the only result
IA h.4
would hace to come down in their
price to that of the lowest bidder in
the eventual distribution of the work"
Three Countries Adopt Plan
He explained that three European
countries, France, Italy and Russia
have sought relief from the high cost
of armor plate by the operation of gov
ernment owned plants, while Japan has
built two government factories. He
found the same subject agitated in
England where many charges of memo
polistie agreements ana extortionate
prices have been made. Hrhe foreign
manufacturers appear to have been able
to keep up a higher price for armor
than those in the United States" he
added
Although money for an armor plant
was provided in an appropriation bill
passed at the beginning of the second
Roosevelt administration, after an investi-
cation. he plant was never constructed.
In consequence, according to Secretary
Daniels, 'the armor plate manufacturers
were allowed to jump their prices from
1916 ton in 1906 to S420 a ton in 1907 and
10 keep at the figure till last year when
they were advanced, under the excuse of
increased exepnses caused by the eight
hour law to $454 ton
Daniels Comments on Expense
As to the expense of a government
plant and the saving to be thus accom-
plished. Mr.. Daniels said
The cost of plant capable of turning
out 10000 tons a year. which is about
half of the armor needed on a two bat
tleship programme is estimated by the
chief of the bureau of ordance al IS, ,466 900
and the cost of the armor at 1914 ton.
The estimate of this officer is consider
ably in excess of the figures given the
government by the last board which in
Nestigated the subject But even at this
estimated cost of the plant and the cost
of 1914 ton of armor plate there would
be effected a saving of $40 ton over
the price now paid that is $f6i a ton.
T sOn 10000 tons the government would
save $l,4o0.000 per annum. Deducting per
cent as the interest on the money used in
building the plant there still remains a
net saving TO the government of 81 ,06l $50.
In the case of the 10000 ton plant which
1t is estimated can produce armor at $219
a ton the net saving is $3,04S 462 Surely
this is, on the face of it. an economy we'll
worth the serious consideration of Con-
gtess. If committee, with expert as
sistance. is given the authority to get at
the exact cost of constructing factory
and of making armor plate. it is believed
the estimates for both will be reduced.
Experience has demonstrated the wisdom
and economy of manufacturing guns and
powder in government factories
Today's report will be followed by a
further presentation OF the results of Sec
retary Daniels inquiries.