Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-10-21
NO EXCESSIVE PROFITS
FOR PRIVATE PLANTS
From Reaping Rich Harvest From
Government Funds.
SECRETARY OUTLINES PROGRAM
He Would Have Government Equip
It's Yards TO Build More Vessels
and Manufacture Armor Plate and
Munitions.

RALEIGH, y. G.. October 2O.-What
the navy expects to do toward prevent
ing private manufacturers from reap
ing excessive profits the cNpendi-
ture of hundreds of millions of dollars
involved in tho administrators ma
tioral defense program was outlined
here to-day by Secretary Daniels in -
speech ~ the North Carolina state Fair.
Mr. Daniels said his annual report to
Congress would recommend legislation
TO enable the government TO equip it
self TO build more naval craft. make it's
OWN armor plate and greatly extend it's
manufacture OF munitions. The gov
eminent has invested many millions Of
dollars In navy-yards." said the secre-
tary, and unless this Investment Is
utilized for new construction much OF
IL Is wasted II the government IL pre-
pared to construct naval craft, private
shipbuilding companies desiring con
tracts must compete with government
yards. This tends to secure competitive
prices and prevent combinations be
tween private corporations to charge
higher prices than conditions justify.
MUST III: ABLE: TO MAKE
PORTION OF MUNITIONS
Not only must the yards be able
10 build ships. but the naval establish
mcnt should be equipped TO manufa"-
ture portion Of all munitions OF war.
In this connection Mr. Daniels pointed
out that the government paid 50 centa
pound to private manufacturer n
few years ago for making powder. but
the navy now Was making it at cost
Of abou, - cents a pound. Torpedoes
and mines, he said. wer" also being
manufactured by the navy at "A great
yaving OF money
DO not understand IN" 10 advocate
any monopoly ny the -ovcrnmcn, in III"
manufacture of munitions" MIR. Daniels
ADDED There arc many things we can
buy from private manufacturers ~ "a,
reasonable price.
81, has been ascertained by spe-
cial commit;e. that the navy with
modern plant can manufacture ariror
plate from $3.50 TO $3.50 az against .hc
noncompctitivc prices Of $25 TO 1856 II
ton charged in the last contract En-
perience in Europe teaches that tho
navy should no longer rely upon pri-
vate manufacturers for projectiles. and
!, Congress approves will erect a
large factory. which viii turn out a
large product of four,een-inch armor-
piercing shells rs we'll as smaller pro-
irUtiles"
The secretary particularly directed
tho attention OF Southern farmers to-
the lack OF ships In the American Iner-
chant marine TO carry their produce 10
those who need I, and are willing TO
pay for II.
NEEDS AUNILIARIEs
WITH AMERICAN CREWS
What the navy needs-and in case
of trouble would need sorcly," he
added, ARE auxiliaries properly built
and equipped with trained Americans.
\ merchant marine with foreign crews
is not an American need either for
commerce OF defense
Explaining why hvc-ycar building
program for the navy was decided
upon. NJ. Daniels said:
Wise men. in and out OF the navy.
believe that the program involving an
expenditure Of $500. 900, 600 viii give us,
"a navy we'll proportional and far bet
ter than so large "A program II il should
be authorized in p!ecemeal year by
year. The program is based upon all
that could be learned by naval experts
In Europe ana our naval statesmen in
America"
Hope that an international under
standing eventually might be reached
by the naval powers was expressed by
the secretary. Il trust" he said. that
this country VIII take the initiative
and that steps will be taken by a con-
ference OF all the powers 10 discuss re-
duction OF the heavy cost OF the army
and navy.