Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-20
Secretary Daniels Gives Pro-
gram for the Expenditure
of Hundreds of Millions.
PERIOD OF BUILDING
TO COVER FIVE YEARS
Will Recommend Legislation to En-
able the Government to Utilize
Its Own Plants.

RALEIGH. n c.. October 2O.-what
the navy expects to do toward prevent
ing private manufacturers from reap
ing excessive profits on the expenditure
Of hundreds of millions involved in the
administrators national defense pro-
gram was outlined here today by Sec
rotary Daniels ina speech at the North
Carolina state fair. Mr.. Daniels said
his annual report to Congress would
recommend legislation to enable the
government to equip itself to build
more naval craft, make its own armor
plate and greatly extend its manufac-
ture of munitions.
THE government has invested many
millions of dollars in navy yards. said
the Secretary, 'and unless this invest
ment Is utilized for new construction
much of it is wasted. If the govern
ment is prepared to construct naval
craft private shipbuilding companies
desiring contracts must compete with
government yards. This tends to Sc
- cure competitive prices and prevent
combinations between private corpora
tions to charge higher prices than con-
ditions justify.
Not only must the yards be able to
build ships. but naval establishments
should be equipped to manufacture a
portion of all munitions of war;
Comparison OF Cost.
In this connection Mr.. Daniels point
ed out that the government paid so
cents pound to a private manufac-
turer a few years ago for making pow
der, but the navy now was making it
at cost of about 25 cents a pound.
Torpedoes and mines, he said, also were
being manufa ctured by the navy at
great saving of money.
These cases could be multiplied"
he added. DO not understand me to
advocate any monopoly by the govern
ment in the manufacture of munitions.
There are many things We can buy
from private manufacturers at a rea-
soma BILE price. The navy, however
should be free to make a large part of
Its munitions if private concerns charge
excessive prices, as has sometimes been
the case when the government is shut
up to buy from only two or three
manufacturers.
( 1T has been ascertained by special
commission that the navy, with a mod
ern plant, can manufacture armor plate
for from $3.50 to $3.50 as against the
.non-competitive prices of $425 to $4S6
a ton charged in the last contract. Ex-
perience In Europe teaches that the
navy should not longer rely upon pri-
rate manufacturers for projectiles. If
Congress approves we will erect large
factory which will turn out a large
Product of fourteen-inch armor-pierc-
Ing shells, well as smaller projec-
tiles. This will insure better shells and
better competition"
Need of Merchant Marine.
The Secretary particularly directed
the attention of southern farmers to
the lack of ships in the American mer-
chant marine to carry their produce to
those who need it and are willing to
pay for 1t.
what the navy needs and, in case of
trouble, would need sorely," he added
are auxiliaries properly built and
equipped with trained Americans A
merchant marine with foreign crews
ID not an American need, either for
commerce or defense"
Explaining why fye-year building
program for the navy was decided
upon, Mr.. Daniels said:
Wise men. in and out of the navy
believe that the program. involving an
us navy well proportional and far
better than SO large program if it
should be authorized in piecemeal, year
by year. The program is based upon
all that could be learned by naval ex-
perts in Europe and our naval states
men in America
Hope that an international under
standing eventually might be reached
by the naval powers was expressed by
the Secretary. II trust" he said, that
this country will take the initiative and
that steps will be taken by conference
of all the powers to discuss reduction
OF the heavy cost of the army and
navy.