New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-11-24
BRITAIN GIVES
RIFLE FIRMS
A NEW DEAL
Agrees to Reimburse
Them for Losses and
Stand Further Costs

On the more or less clouded subject
of British rife contracts in this coun-
try the following formal statement was
issued yesterday:
Thomas J.. Chsdbourne, jr., OF Chad
bourne e. Shores, announced to-day that
the Mdvae Steel and Ordnance Company.
Remington Arms-Union Metallic Cartridge
Company and Winchester Repeating Arms
Company. being the only three concerns IN
the United States having contracts with
the British government for the manuiact-
ure Of rifles. had employed him in the
month of SeptembeE 10 take up with the
British government the question OF secur-
ing a modification Of their rife contracts.
This negotiation has been concluded, and
the meeting Of minds OF all parties has been
crystallizcd in an exchange Of letters,
which provide for the execution OF con-
tracts by which the government will fully
reimburse and protect each company as 20
its actual expenditures, as well as upon all
contracts and agreements made b. the
companies for the carrying out OF the con
tracts as soon as the amounts due thsreun-
der can be ascertaincd except for buildings
and fixed machinery owned by the COM
panies, which can be devoted 10 their other
uses.
Each company will agree 20 continue
manufacturing rifles for the government up
10 an aggregate OF 2.000000 for all the
companies. including those already dev
ere lthe original contracts having aggre-
gated 100000 rifesi. the government pay
ing the companies the amount OF further
expenditures which the companies nay be
required TO make in order 20 complete the
manufacture Of such rifles.
The companies arc 10 receive profit on
rifles manufactured By them in addition %
the total OF 100000.
Unofficial reports touching the modi-
fcation of the contracts referred TO
above had been misconstrued to mean
cancellation. That was owing to the
obscurity of the statement that the
British government would take them
over" This turns out TO mean merely
that the British government will
undertake financial responsibility for
their execution.
Contracts Source of Trouble
Rife contracts, both Russian and
British, have caused endless trouble
and misunderstanding. Inspections
have been much more rigid and un-
yielding than the American manufac-
turers thought reasonable. In their
efforts to meet specifications they in
CURED costs which ate up all the
profit. These are all old contracts.
No large orders for rifles have been
placed here within the last twelve
months. That is partly because of the
difficulties referred TO and partly be-
cause the Importance of small arms
has been decreasing in warfare. Or
ders for big guns have been continuous.
Under the readjustment announced
yesterday by Mr.. Chadbourne the sew
ersl companies mentioned will be re-
imbursed to the full extent of their
expenditures on the rifles thus far
completed, and in carrying out the
uncompleted orders the British govern
ment will be responsible for the op-
Grating costs with the possible chance
of small profit for the companies
based on a percentage basis. The total
reimbursement to the three companies
will be in excess of S40,000,000. In
other words, they neither make nor
lose for their past work.
Heavy Buying of Materials
As for the rumors that war con-
tracts are being cancelled in a whole
sale manner the fact is Europes pur-
chases currently are on plane never
touched before since the beginning of
the war; and they are tending to rise.
This is indicated by the foreign trade
figures, by the daily reports of new
contracts placed for materials, and by
the increasing proportions of the
credit operations necessary to finance
the purchases. Confusion In the lay
mans mind arises from the fact that
the character Of the business has been
changing somewhat. Great Britain
and France. for example, are producing
a larger proportion of the rifles and
finished munitions required, while at
the same time they are buying greater
quantities of basic materials and semi
products in this country.