Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-01-18
HEAD OF BETHLEHEM
/ STEEL co. OPPOSES
N U. S. ARMOR PLANT
f.. G. Grace Protests Against
Bill Providing for Establish
ment of Government
~ Factory
M1DvALE DEAL DENIED
BIZ a stsr oofrespondent

wAsHINGToN. Jan. 1S-Testifying be-
fore the Senate Naval Affairs Committee
today, r. q. Grace, president of the Beth
ichem Steel Company. opposed the bill for
a Fe1eral armur plate factory. He sub
mitted n detailed statement of the armor
plate contracts received by the company
from the United states Government from
1857 to the present time.
This shows" said Mr.. Grace, that we
have made a total of 5000 tons for the
Government The prices ranged from 500
10 $34s a ton, tho average being S432, To-
days price is 1925.
THE Niles Board Investigated us and
came to the conclusion we were not rob-
pfng the Government. which we have
been accused of so often. Japan has
Government arrnor plate plant and It is
costing that country $3.50 ton this year
Questioned by Senator Swanson, of
virginia, as 10 whether the Bethlehem
Company had ever sold armor plate TO
foreign government, he said IL had been
sold In small amounts.
ibid you sell at lower price 10 foreign
governments than to the United States"
was asked
"our first contract, made with the Rus
sian Government was at price lower
than our then regning prices TO the
United States" Baid Mr.. Grace. our
Government was using only about one
third of our production, so we sought
customer in foreign fields. In order to
get that customer we dumped our
product That is the only time we ever
sold TO a foreign government at a price
lower than that charged the United
States.''
Mr.. Grace testified that the value OF
the armor plate plant OF the Bethlehem
Company is S10O,0O0 He placed the
value of the entire plant of the COM
f,apv and 900
''If we could run our armor plate COM
pany at full capacity the year through.
we could make armor plate at 1915 a
ton, but when our production Is reduced
one half the cost is increased 20 per
cent" said Mr.. Grace.
''Is IL true" asked Senator Penrose
of Pennsylvania, that you have absorbed
the Midvale Steel Company"
Absolutely Incorrect" was the answer.
II asked that question" explained SEN
ator Penrose, because Senator Tillman,
chairman OF this committee and author
of the bill for the Federal armor plant,
said that such consolidation had been
effected"
Senator Swanson asked whether Mr..
Grace would allow an expert accountant
10 go through the books of the Bethle-
hem company for the purpose of deter
mining the cost of making armor plate.
81 would not consent to an interpreta-
ton Of our books by a Government ac-
countant." said Mr.. Grace. II would con-
sent to public accountant IL we could
agree on one"
You refused to allow representative |
Of the Navy Department 10 go through |
your books" said Senator Tillman.
Yes and ] would refuse TO consent to |
that today. We do not propose to allow |
D prospective competitor to go through |
our books"
A five million-dollar munition plant at
Toledo. Ohio, was proposed in a bill in
in the House today by Repre- |
sentative Sherwood of Ohio. Represen- |
tative Sherwood declared that the |
Government manufacture of munitions |
would tend to put an end TO the pro-
paganda of preparedness.