Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1914-01-21
Tapenner Tells of How Millions
Can Be Saved Making Ay-n1of- Plate

TASK History does not warrant an as
; sumption that the patriotism OF these
companies would prove superior 70
their desire for profits, inasmuch as
during the time that war with Spain
was imminent. these companies re-
fused 10 accept the price fixed by con.
gress after investigation as a Just rate.
and declined to manufacture any armor
until they got their own price of 500
a ton more than that which congress
had determined on. In this connec-
ton, II is well TO note that the love OF
country possessed by these companies
did not prevent them from furnishing
armor TO Russia, as reported to con-
gress. in 1894. at s24s a ton, while
they were charging the United States
I S616.14 a ton.
Hardly can one help thinking: What
a patriotic band of buccaneers to sub
sidize in time OF peace in order that
We may be at their tender mercy in
/ time OF war.
Secretary Daniels estimates that he
could save S1,O5I $50 per annum on n
1O.0OO-ton-a-year armor plant. after
deducting four per cent as interest on
the money used in the erection and In
stallation OF a plant. and S3.O4s.46 a
year on the basis of O.OOO-ton-a-year
plant
Secretary Daniels concludes with the
following significant statement. which
l hope every member of congress will
read at least two or three times 70
fully appreciate the warning contained
therein:
Il do not see how IT is possible for
-
fusal to erect a government plant, nor
how II can answer the charge that will
invariably be brought up-that the
same mysterious Providence which
saved this profitable business to the
steel companies three times in the
past even after money for a govern /
ment plant had actually been appro- !
priated, is not still at work exercising !
its benefcient protection over these
lusty specimens of infant industries, !
who are even now under investiga- /
ton as violators of the antitrust law" /
1t might be well 10 state at this point
what and who the ''armor ring is. It /
does not come under the head of IN
visible government, as il is possible 20
definitely locate it, and place our firger
uPon IL.
DE ltEm TlUB -
these three concerns: Bethlehem Steel
company, Carnegie Steel company and
the Midvale Steel company. So far,
these three concerns have drawn Gown
millions of dollars
worth OF contracts from the navy de-
partment alone. divided as follows:
$34.215.1125S; Carnegie,
SO; Midvale. 2.044,21741.
Tor battleship No SO. now in course of
Secretary Daniels was
amazed to find that each concern had
put in practically the same bid. The
secretary wrote each OF the bidders a
etter. asking how il came their bids
we're so nearly identical. Two OF the
hree firms frankly replied that the )
hree companies above alluded 10 we're
he only ones in this country that
,ould do the work, and therefore TO
lid against each other would be sim-t
,Iy to bring down the price. especially
ince IL was the custom Of the navy to
livide its work betweeL the three
lrms.
The ammunition ring is composed OF
he three firms above mentioned. with
ne or two smaller concerns added. a
ontracts awarded these firms by the
ANY department have not yet teen I
made public. Secretary OF War Garri- n
on is however, compiling such sta d
istics now.
The investigation that I have per b
onalIy been able to make. conyinces II
ne that the war department is being a
to a greater extent even q
han the navy department.. and that )
ecretary Daniels recommendation OF II
manufacture OF ammuni- G
on applies with even greater force to u
ne war department than to the navy a
apartment c.
While quite a variety OF military p
ecessities are being manufactured
= the government in the arsenals, p
re ammunition ring" sees 20 p
that the various arsenals are Ct
sldom enlarged. and the fat contracts pi
re then thrown TO the Ammunition CT
ng" ON the ground that the capacity W