Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-03-23
THE BETHLEHEM
STEEL Offer OF ,
BIG REDUCTION

Washington, March 22.-The Bethlehem
Steel Co. today offered to reduce the price
of armor plate from $425 to 1896 a ton. Il
This offer previously was made to tho
Senate committee and ignored. In the
face Of threats after the Senate commit.
tees refusal to entertain the proposal,
that the armor makers would raise the
price If the bill passed, the cornpany.s
renewed offer caused much surprise The
proposal was submitted by President
Grace Of the Bethlehem Company. who
repeated his statement that If the gov
eminent erected a plant. private worka
worth moro than 2o.o0O,o 900 would be made
useless. President Grace's proposal con-
tinued: ~
''The Bethlehem Steel Co., altoRethsrs
aside from its financial interests, recog-
MIXING it's obligation as a citizen and I'M
order that its position may be clearly,
understood. now desires formally to sub.
NIT the following proposition to the fed
eral government:
I'VE will manufacture one-third, or such
additional quantity as may be awarded
TO US OF the armor plate required for
the contemplated five-year naval pro-
gram. estimated at approximately 10000
tons, at price of $395 per ton for sfdes
armor as compared with tho price Of s42s,
now obtaining.
THE proposed price Is lower than has
been paid by the government for more
than 10 years.
III the foregoing price is not satisfac.
tory we will agree to permit any wei,
known firm Of chartered accountants. or
the federal trade commission, to inventory
our plant and make careful estimates Of!
the cost of manufacture: with that data
IN hand we will meet the secretary Of tho
navy and guarantee to manufacture ar
NOR at a price which would be entirelv
satisfactory to him as being quite az low
as the lowest price at which the govern
ment could possibly manufacture armor
on its own account after taking into con-
sideration all proper charges.
I'VE make the foregoing proposit,on,
rather than have our plant put out Of
| existence. We have invested, as &C.
| tually inventoried today over $1,000 o00
in that plant This figure does not take
into account the large expenditures.
certainly 100000 for the plants and
equipment which have been abandoned
on account Of becoming obsolete.
we are today selling armor to the
United States government at a lower
price than England. Germany, France.
Austria and Japan are paying, even
where the government itself (Japenl
has embarked in the business. Not
only Is that true. but the specifications
Of the United States are more riaid
and the wages paid are very much highs
er than those prevailing tn any foreisn
country. ~
steel prices are continually going up
and they are today much higher than
has been the case for many years. In
spite Of that we offer to make armor
at lower price than the United States
has paid for 20 years and we agree to
accept this price for the next i've years.
We also call attention to the fact that
though since the war began, We have
been able in Europe to get almost any
price we chose to ask for ordnance. We
have during tho period made no addi-
tons whatever to the selling price TO
the United States government for any
Of the ordnance products which w
manufactured"