The Washington herald., 1913-09-06
U.S.ARMOR PLANT
IS A POSSIBILITY
Prices Charged by Trust"
Make Uncle Sam
Consider.
WOULD COST $S,466,OOO
Foreign Countries ALI Trying Expedi-
ents to Dodge Greed of Manu-
facurers of Plate.

Unless the armor plate .manufactur
ers in this country take note of ''th
handwriting on the WALL and consid
erably reduce the prices they ar,
charging Uncle Sam for armor plat
S>r his navy, there will be q govern
=ent owned and operated armor plat
factory, which will take a large par
of their present business away from
them.
It is quite possible that no matter
what the manufacturers do in the wal
of reducing prices, the government viii
erect such a plant. Threats 10 do 81
have been made before, and during
Roosevelt's second administration Con
gress even appropriated money for thu
erection of such a plant, but the ad'
ministration, for some unaccountabl'
reason, seemed loath TO construct the
plant, and no steps were taken toward
beginning actual operations.
But Secretary of the Navy Daniel:
has made definite recommendations tc
Congress that a thorough investiga'
ton be made by II into the advisa'
bility of the erection OF such plant
and It is beyond doubt that such ar
investigation will be made as soon as
Congress gets the tariff and currency
of its hands. Already Senator Ashursi
of Arizona has introduced q bill au-
thorizinE the appropriation of $780,
900 for beginning the erection of the
plant.
Top Price Asked.
In the mast the government has en-
coura ased as far as possible the develop
ment of private armor-plate factories.
There are only three now operating
which produce the heavy armor required
for the battleshiPs These are the Beth
lehem. Midvale. and Carnegie plants To
these three companies the government
has paid for armor plate since its intro
duction in the construction Of war ves-
sells 81, ,1O3. 1885.
The armor plate manufacturers have
jumped their prices enormously. without
any regard TO the actual cost of produc-
ton Of arrnor plate, according to the be-
lief Of Secretary Daniels They have
taken the highest prices they could get
and asked for still higher. The cost Of
armor plate in 1906 was SS46 a ton: in
1907 the price was jumped TO $500 Last
year the price was still further ad-
vanced TO 1854 a ton, the excuse given
being the eight-hour labor law on gov
ernment work made it necessary.
Secretary Daniels has obtained figures
from the Bureau of Ordnance of the
Navy Department as to the cost Of
plant capable Of turning out 1000 tons
the amount required il the two-battle-
ship program is continued. The cost of
a plant of this capacity will be S. 46S, 900.
The armor plate made at this govern
n1ent plant will cost S314 ton, and the
government will save $40 a ton on the
armor it uses for its navy. In other
words, the government will save 8, 40, 900
a year.
At this rate the plant would soon pay
for itself, and then continue to save the
government enormous gums each year.
If manufacturers still refused 10 lower
their prices. the government could at
any time extend its plant so that II
would have a capacity of 10000 tons a
year, and refuse TO purchase from the
private concerns.
Each Got Share.
In his report to Congress, Secretary
Daniels declares that he considers it =
possibility 10 erect and operate a gov
ernpent armor plate factory; that it is
good policy TO do so, and that it will
be economical
The government in the past has given
the three armor plate concerns an equal
share OF the contracts for plate. The
price has been fixed at tie lowest bid
offered by any one OF the three COM
panies. But with the understanding that
each was 10 get a share of the contracts,
range that their bids should not be low
in any sense OF the word. Their action
has brought about the present determi-
nation on the part Of members Of Con-
gress and the Secretary Of the Navy to
erect a government plant.
The United States is not the only coun-
try which has suffered from the grasping
manufacturers OF armor plate. Armor
plate is peculiarly susceptible TO monop-
oily, because of the very expensive ma
chinery required in its manufacture.
''Armor trusts" exist abroad as well as
in this country. They have contriyed TO
keep UP higher prices on armor plate
than the manufacturers in the United
States. This is due TO the fact that Con-
Eress has by its threats occasionally sue
ceeded in bringing about reductions in
the prices asked.
France Has Plant.
Three European governments have un-
dertaken to solve the problem of reducing
the price of armor plate for themselves.
France mas sought to reduce the price of
armor by erecting a plant which pro-
duces only a portion of the armor needed
for her ships. This plant will be used as
a basis for determining the actual cost
Of the manufacture of armor plate, and
at the same time will be capable OF being
enlarged to a sufficient size to manufSs-
plant for Class A armor is not yet in
operation, although a plant for making
thin plates has been in operation for some
time.
The Russian government has under
taken TO manufacture all the armor plate |
required for its navy, the plan adopted
being to erect the plant and invite for
Neign manufacturers to come in and man
age il for the government. |
ba triad
third method of getting around the |
trusts going abroad TO break the mo- |
nopoly at home, and plates are now being |
manufactured in the United States for |
the Italian navy. Japan has built two |
government factories, and it is believed |
that they are successful, though no in |
formation is given out regarding them. 1
In England the newspapers recently agi-
tated the subject of a government armor |
plant in order TO break the monopoly and |
high prices which exist there.