The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1913-07-15
Secretary Daniels Says 1t
Would Save S1,OOO,OOG
Year
ASKS CONGRESS
TO INVESTIGATE
Private Owned Concerns Accused of
Boosting Price to Uncle Sam-Plant
Would Cost Something Over Ss,0O0,-
600 According to Estimates.

WASHINGTON, July Is. = Naval
experts figures showing that govern
ment plate factory costing $S, ,466 900.
would save $40 a ton on armor. or
more than a million dollars net wear.
were submitted to Congress Yesterday
by Secretary Daniels.
The secretary s report was sent in
response to Senate resolution and
supplemented previous statement is
sued by him advocating a government
owned armor plate factory. Millions
can be saved either by operating gov
erhment plant, or by compelling com
peItion among the private manufac-
tufers, Mr.. Daniels declared. There
fore, he asked Congress to make \
full, thorough and early investigation
OF the cost of IN armor plate factory
and the. cost OF manufacturing armor
plate IN factories owned by concerns de-
pendent upon government patronage. -
heVleWIng the situation in his re-
port the secretary said the accented
plan had been that the Bethlehem and
Carnegie and Midvale plants should he
gwen the armor work at practically
their own prices. E'This step HAVING
been taken,'i he said, cit clearly fol
lows that the manufacturers them
selves, convinced that one-third of the
work Is coming to them without much
reference to the price they may bid.
nave not overlooked 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 il.
a bid much lower than the others. the
only result would be that the other
two firms would have to come down in
their price to that of the lowest bid
der IN the eventual distribution of the
work. -
He explained that France, ITALY and
Russia have sought relief from the
hlgh cost OF armor plate by the oper-
atIon of government-owned plants.
while Japan has built two government
factories. lie found the same subject
agltated in England, where many
charges of monopolistic agreements
and extortionate prices have been
made The foreign manufacturers ap-
pear to have been able to keep up a
nlSher prlee for armor than those in the
United States, he added
| Although money for an armor plant
was provided in an appropriation bin
passed at the beginning of the second
Roosevelt administration, after an in
Vesugatlon the plant was never CON
structed- In consequence, according
to Secretary Daniels, "'the armor plate
manufacturers We're allowed to Jump
their prices from 1916 ton in 1906
to S420 ton in 1907 and to keep at
that figure till last year. when they
were advanced, under the excuse OF
increased expense caused by the
elght-hour law, to $454 a ton. -
Discussing the expense of a govern.
ment plant, Mr.. Daniels said:
1t a committee with expert assist
ance is given the authority to oct at
the exact cost of constructing fac
tory and of making armor plate. it is
believed the the estimates for both
viii be reduced. Experience has demon
strated the wisdom and economy of
manufacturing guns and powder in
government factories. -
Today s report will be followed bv a
further presentation of the results of
Secretary Daniels's S inquiries.