Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1916-04-01
THE u, S, PLANT.

Passage by the Senate of a bill for
government armor plate plant has
nation among the ranks of the oppo-
nents of government ownership. Their
anxiety is provoked by their failure to
realize that the government was com
PEELED to take this step to protect it
self from the armor-plate manufacture
ers, sort of insurance policy against
being "gouged' by private manufac-
turers.
An editorial in the New York World
recently set out by means of conyinc-
ling figures the situation which forced
! the government to safeguard its in
| terests. 1t shows that for years for
eign governments have been obtaining
plate at much lower rates than the
home government If this were not
enough, one need only consider the
voluntary reduction of the price by
one armor plate maker after it be
came evident that the Senate meant
to build plant for the government
The World says:
For many years the government
has been at the mercy of the armor-
plate makers, and they have dictated
prices In 1893 the Bethlehem com
pany sold armor-plate to the Unit
ed States government at $616 and
the following year to Russia at $249
In 1911 it charged the United States
government 1920 and sold armor
plate to Italy at 1895. Later it sold
Iarmorplate to Japan at $406.35, while
the United States was paying from
1904 to $40. A closed market here
in which three companies virtually
worked in agreement, and an open
market abroad, made an immense diff
ference in prices.
"a government plant such as the
senate bill provides for will help to
free the governments hands. 1t will
not close down the armor-plate max
ers' plants or ruin their investment
as they pitifully plead. The amount
of armor-plate required for the con.
templated five-year naval programme
is estimated at 10000 tons, which
the armor- plate manufacturers offer
to supply at from 1895 to $402.50. A
government plant, it is estimated, will
turn out armor-plate at a cost of $3.50
ton. While the armor-plate makers
may dispute the accuracy of these
! figures, they cannot deny that the gov
eminent will be in a position to save
many millions of dollars. Some Of
their statements are more than ques-
/ tionable. President Grace of the
Bethlehem Company declares that the
/ Senate's estimate of $11,000000 for
20,OO0-ton government plant is too
low, and that it cannot be built for
less than $15,000,000. At the same
time he offers to supply $4,000 tons
year for the next five years from
the Bethlehem plant, which he APP
praises at $7O0O,O00"
A similar situation faced the gov
eminent in the matter of smokeless
powder Before it began to manufac-
ture its own powder, it paid private
company 80 cents a pound. Today
with government plant, of six mil
lion tons capacity, it makes powder
at cost OF "A cents or SO cents, in
Guiding overhead charges.
Americans permit their govern
ment to endure a tremendous amount
of oppression before they call halt.
Private concerns DO not wait so long
to. throw off the yoke When the
Pennsylvania Railroad thought thai
ii vas being gouged for rails, I'll dc
what the government is now doing
obtained its own rail plants by buyine
into the Cambria and Pennsylvania
Steel Companies, All the American
, government is trying to do is to pro
tect itself Against that there is nc
/ argument.