Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-29
SAVING Of MONEY
IN POWDER COST
Manufacture by Government Is
Great Economy, Secretary
Daniels Says.
GIVES OFFICIAL FIGURES
FROM INDIAN HEAD PLANT
Argues That Results There Indi.
cate Desirability of Government
Armor Plate Factory.

The Navy Department has saved $751;
5Hs2 on the cost OF powder since /
erected It's own powder-producing plant
at Indian Head, Nd. thirteen years age
These are Official figures. cited by Score
tary Daniels, this morning.
The Secretary OF the Navy points 10
this economy in the expectation that IL
VIII be adequate reply 10 those who a.
sert that sovernment-owned armor-
plate plant win be costly venture lie
believes il effectively refutes the state
ment that manufacturing undertaken nv
the government has always resulted In
increased cost over prices paid outside
producers
In rebuttal OF the argument that the
production of armor plate by the gov
eminent will merely mean increase in
cost to the government Secretary Daniel
said:
Il think the significant figures I'm con-
nection with the manufacture of powder
ought to be a sufficient reply. Previous
10 lOl the government was obliged to
purchase all of its powder from private
manufacturers. and the situation was IN
some ways about the same as II Is now
In the manufacture Of armor plate.
Action by Congress.
In 1901 Congress authorized the erec-
ton Of a small plant to be operated BY
the Navy Department for the manufac-
ture of powder. il not being the intention
at the time to manufac. ure all OF the
powder used by the government. but tn
manufacture sufficient powder to keep
down the price charged ny outside erms
starting in by manufacturing 81. 40,
pounds this plant has proved so uccess-
ful as to warrant It's being increased until
4 hn M "a fsa~ a
pounds.
The plant is not yet large enough IN
make all of the powder. althou II tn.
amount actually used each year can he
replaced from our own plant. Two
thirds of the powder must still re rlIr-
chased In the open market. because every
new ship launched requires million
pounds for its outfit. and a reserve OF
powder must be maintained as well.
The point ] want to make Is this: We
have had to buy since 1860 part OF our
powder In the open market and have thus
been able to compare exactly the cost OF
the powder bought with the cost of the
powder manufactured ourselves Includ-
ing every item OF cost. overhead
charges. depreciation and interest on
plant, the Navy Department is now man.
ufactLring powder at 81 cents per pound.
which Is In every Way as good or better
than the powder for which II is paying
80 cents per pound. The price has come
down steadily under government opera
lions from 81 cents per pound to the
present 37-cent rate.
Forces Down Prices.
1T Is interesting to note that since the
government took to manufacturing part
Of the powder itself the manufacturers OF
powder have lowered their prices every
year from 50 cents to the present sixty
cent rate. There is no reason to sup
pose that the price charged by outside
firms would have been reduced from the
eighty-cent rate had the policy OF es
tablishing our own plant not been car
ried through.
Il think these facts in themselves show
that the argument that armor plate
manufacturing under the government
must necessarily cost more than IL does
now is without merit