New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-22
DANIELS FINDS BIDS ON
ARM0R PLATE A FARCE
If Subsidy Be Advantageous,
Let 1t Be AbOveboard,
Urges Secretary.
PREFERS FEDERAL PLANT
Economy and Freedom from
Trust Methods Assured
by Government Fac
tory, He Says.
From The Tribune Bureau. ]

From The Tribune Bureau
Washington. May 2l-An emphatic state
mcnt condemning the lack Of competition
among the corporations furnishing armor
plate to the Navy Department, and CIV
ing figures and correspondence on the
subject. was made by the Secretary of
the Navy to-day relative TO his scheme
for a government armor plant.
II have been investigating this subject
for the last month or more said Mr.
Daniels. and while. OF course. that Is too
short time 10 master all OF the IN
trIcacies OF the subject. enough has been
made clear 10 warrant my saying that
tine department, policy toward the armor
plate companies makes all pretence OF
competitive bidding 10 get the lowest
market price for armor plate farce
that cannot possibly deceive any one
acquainted with the facts
Now set us see what was actually
done. taking the recent contracts for
about 500 tons Of armor plate to be
used on the new battleship Pennsylvania
which Will cost the government I'm the
neighborhood Of s.. 500c0). The advertis-
ing. which is theoretically supposed 10
bring 20 the notice OF every manufactur-
or who may have. or may contemplate
erecting. the necessary machinery Tor
making armor plate. the fact that the
government had a large contract 10 let
to the lowest bidder. consisted I'm pub
fishing a notice one inch long. Ia the
fft only The
Philadelphia Item that sealed proposals
for furnishing armor for vessels VIII be re-
ceived al the Navy Department AT i
O'Clock noon. February IS with no hint
Of the amount and only four weeks I'm
advance Of the date set for tho receiving
Of the bids In response 10 this vide
publicity three bids were received from
alleged independent steel companies.
1T must be presumed that these COM
panles were not in collision or combina-
ton. because in Difference 10 the act OF
Congress the president Of each company
submitted an affidavit that his company
was not engaged in any combination.
agreement. or understanding TO mon
opollzc Interstate or foreign commerce
and trade OF the United States. as de-
fined I'm the statute. These three COM
panies. the Carnegie Steel Company. the
Midvale Steel Company and the Bethlc-
hem Steel Company. working. II Is TO he
presumed In the absence Of legal evidence
to the contrary. independently on the
specifications I'm an effort 10 bid the
lowest prices consistent with reasonable
profit. arrived at uniformity OF bids
which is truly surprising when the many
complicated items entering into the cost
Of making armor are considered"
Mr. Daniels showed that the bids ~
the three companies for one class OF
steel were, respectively $9s 81, si9s and
;l@j ton. and that there was equally
striking similarity In the orler BIDS and
that despite the slight DISCREPANCIES the
award was not made to the lowest hid
der. but that the contract was divided
among them, and that this practice is
not confined to armor plate by any
means"
Mr.. Daniels wrote To the Midvale and
the Bethlehem Steel companies. asking
how their bids happened to be 80 nearly
uniform. Both replied. I'm substance, that
II was due 10 the practice OF the govern
ment in dividing the contracts at the
lowest price bid. This. they said had
led them to submit their bids at the
same figure as the last divided contract
awarded.
"My contention said Mr.. Daniels.
In closing. is this: II we are going
10 subsidize the Carnegie. Midvale and
Bethlehem companies so as TO have the
advantage OF their armor plants In case
OF war. then let us do so honestly and
nan fashion, by statute. without conceal
ment or attempt at hypocrtical evasion
If the intent Of Congress To force com
petition and TO award contracts to the
lowest bidder.
The matter of government manufac-
ture of armor plate vas taken up once
and n thorough investigation made. a re-
port was drawn up. which estimated the
cost at something like $, 10000. Nothing
was ever done about this. and the price
Of armor has crept up ever since. the
bids for the Pennsylvania armor being
S per cent higher than that of the last
previous armor made. the eight-hour
law was given as the reason for this last
increase.
This Is really a separate subject and
will be covered more fully in my report
TO Congress. I'm which I trust to have
prepared a rough preliminary estimate. at
least sufficiently definite To- warrant
thorough investigation OF the subject
,,,do. enocfaI apt of Congress