The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1915-12-29
need ARMOR PLANT
SECRETARY OF NAVY GIVES IN
TERESTING FACTS

TERESTING FACTS
CONGRESS SHOULD ACT
Extracts From Report of Secretary
Daniels Upon the Advisability OF
Establishing an Armor Plate Foun.
dry Owned by the Government OF
This Country.
-4:While the navy department. has
been able to supply other important
needs in markets affoTding some COM
petition, in the purchase Of armoI
plate it has been restricted to making
these large purchases practically
without competition. The natural re-
suit has been that the makers OF
armor plate and for some years they
have practically charged the same
price per ton. In my report for 1913
/ recounted the fact that when bids
were invited for the Arizona, all three
of these firms made identically the
same bid to cent. They justified
this sham Of bidding by saying that
upon the last award when the newest
Of the companies underbid the two
older ones the department made an
award of one-third of the quantity
desired to each firm at the lowest
figure quoted. Thereafter there was
no incentive on the part Of the new
company to compete in bidding, be-
cause when it made lower price it
only received one-third of the con-
tract. All the bids made then were
rejected, and when the manufacturers
found the department would not pay
their price, a reduction Of S111,SI
was made for the Arizona's armor
over the price of that charged for the
bought in 1912. The
next year, when bids were opened Tor
armor plate for three ships, upon the
basis of buying at wholesale, it was
natural to expect a material reduc-
ton in TIE price, but the three COM
panies submitted bids for only trifle
less than the price they received for
the armor for one ship in the. preced-
ing year. ALI these bids being re-
jected, upon the second opening Of
bids the department effected a saw
ing of $73S,64S. The prices quoted
this year for battleships No. 43 and
No. "A are practically the same as
for the California, Idaho, and Misas5
sippi.
It has been demonstrated beyond.
controversy that the prices charged
by the armor plate plants have no
reference to competition and little
reference to the cost of production.
Recently one Of these armor plate
factories at Midvale, Pa, the young
est of the three and the one that
some years ago underbid the others,
has passed into new hands. What ef-
feet this change Of ownership will
have remains to be seen. In the
light Of past experience there seems
to be no hope for better prices for the
except by the creation OF
a plant of its own. Under these con.
ditions there is little probability OF
securing armor plate at q reasonable
price from private companies unless
the government itself erects plant
and IS able to manufacture armor
plate whenever private companies DO
not fix a fair price. The last session
OF congress appointed a committee
COMPOSED of the chairmen OF the
naval affairs committees, House and
Senate, and the chief of the bureau Of
ordnance. This committee made in
Yestigations and its report was filed
toward the close Of the last session OF
the Sixty-third Congress, but no ac-
ton was taken upon it, as the COM
mittee had been unable to complete
it's report until a short time before
adjournment Of congress. 1t is to De
regretted that when the committee
undertook the Investigation it had no
opportunity to compare the cost OF
making armor plate in this country
with the cost abroad or to make a
comparison of the operation Of such
a factory in various countries.
When the recommendation was
first made for an armor plate factory,
it was expected that the committee
would secure from other countries
much information that. would throw
light upon the actual cost OF a. plant
and it's operation. With no oppor'
tunity to make such comparisons OF
to see any plants in operations ex'
cept the three in our own country, the
committee, with this limited oppor-
tunity to ascertain the world facts
made it's report. It estimated. that Il
our government should establish q
plant with the capacity of 10000
tons, armor plate could be manufac,
tured at S262.79 per ton, or fac.
tory with 10000 tons capacity at
$3.50 per ton. The price charged the
government for the last arrnor plate
purchased was $425 per ton, and the
price in 1913 was S454 on contract
let March 8, 1913, and s440 per, ton
on contract let November II, 1918,
and in 1912 (before the S-hour law
became effective) S420 per ton. This
shows that a. very large saving can
be effected if the Congress makes an
aDpTOpTlaIlOu Ill dGCOA OdASC "itN 49, :,
recommendation for the erection OF
an armor plate plant.
In addition to the saving that could
be effected, there is another consld-
Grafton in favor of such a govern
ment owned and operated plant that
is entitled to great weight. The
armor plate which we are now using
on our ships has depended for i'm
provements largely upon the recon-
mendations Of our expert naval DILL
GERS. Such Improvements as the ser
vice can suggest accrue to the private
companies making the armor plate.
AS they may also manufacture lot
foreign governments, these improve
ments are open to all the world When
they should belong only to the Amerl-
can people. The ability to retain 1or
ourselves all the advantages Wnlch
the skill and knowledge o. naval eS-
perts give to private marufacture!s
ought to belong to our navy. inns
additional reason for the estaellsn-
ment of a government plant is not TO
he lightly regarded. Japan has erect,
ed its own armor making plant. All
80 - 1o,roc about tha process IS