The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-07-19
GAN SAVE MILLION A YEAR.
ARMOR PLATE
FACTORY SUGGESTED.
Daniels, Replying to Tillman RcsO-
luton, Points Out Way to Prevent
EXtOrtion by Companies.

oihioi, VI HioIc IMAM al TlllilOn dollars
net year, were submitted to con-
gress today by Secretary Daniels.
The secretary's report was sent in
response to senate resolution, and
supplemented previous statements
issued by him advocating a govern
ment owned armor plant
Millions can be saved either by op-
Grating government plant or by
compelling competition among the
private manufacturers, Mr.. Daniels
declared. Therefore he asked con-
gress to make full, thorough and
early investigation of the cost of an
armor plate factory and the cost of
manufacturing armour plate in fac
tories owned by concerns dependent
upon government patronage.
Reviewing the situation i'm his re
port. the secretary said the accepted
plan had been that the Bethlehem,
Carnegie and Midvale plants should
be given the armour work at prac-
tically their own prices.
This step having been taken" he
said, lit clearly follows that the man.
ufacturers 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 would be that the
other two firms would have to come
down on their price to that of the
lowest bidder in the eventual distri-
button Of the work."
He explained that three European
countries, France, Italy and Russia,
have sought relief from the high
cost OF armour plate by the operation
of government owned plants, while
Japan has built two government fac
tories. He found the same subject
agitated in England, where many
charges of monopolistic agreements
and extortionate prices have been
made. The foreign manufacturers
appear to have been able to keep up
u higher price for armour than those
in the United States" he added.
Although money for an armour
plant was provided in an appropria-
tion bill passed at the beginning or
the second Roosevelt administration,
after an investigation the plant was
never constructed. In consequence,
according to Secretary Daniels, "thc
armor plate manufacturers were al
lowed to jump their prices from
S346 ton in 1906 to $3.50 a ton in
1907 and to keep at that figure till
asst year when they were advanced,
under the excuse of increased expen-
ses caused by the eight hour law.
to 1854 ton"
AS To the expense of "a government
plant and the saving to be thus ac-
complished, Mr.. Daniels said:
The cost of a plant capable Of
turning out 10000 tons a year, which
Is about half of the armor needed on
u two-battleship programme, is esti-
mated by the chief of the bureau of
ordinance at ss.466. 1000 and the cost
of the armor at 1914 "a ton.
THE estimate of this officer Is con
sidcrably in excess Of the figures
given the government by the last
board which investigated the subject.
But even at this estimated cost of the
plant and the cost of 1914 a ton OF
armor plate there would be effected
a saving OF $40 "a ton over the price
now paid. that is, $i54 ton.
ION 10000 tons the government
would save $1,lO0,OOO per annum.
pcducting I per cent as the interest
on the money used i'm building the
plant there still remains net saving
To the government of $l,9G1, $50. In
the case of the 10000 ton plant,
winch It Is estimated can produce ar
NOR plate at $279 Il ton the net say
ing is $3.oiS,iG2. Surely this is, on
the face Of il, an economy well worth
thc serious consideration of congress.
II committee, with expert assist
anCc, is given the authority to get at
the exact cost Of constructing "a fac
tory and of making armor plate, it
is believed the estimates for both will
be reduced. Experience has demon
stratcd the wisdom and economy of
guns and powder i'm
government factories
TOday's report will be followed by
u further presentation of the results
~ secretary Daniels inquiries.
Tn" County Summer school for