New Britain herald., 1916-09-21
BALDWIN WORKS
 TAKES WAR ORDER
Will Finish S4O,OOO,OOO Contract
 for Eddystone Company

< New York, Sept. 21.-The story of many. troubles experienced by group
 of bankers with a huge contract for shrapnel for the Russian government has come to light in the information that the Eddystone Ammunition Cor poration had turned over to the Bald win Locomotive Works a 40,000,O00 order for shells. The bankers, it was learned, were glad to forego the ex- pected profits in view of the mental relief they would get from the trans fer and the certainty that they would not lose any money.
 The contract was obtained by the Eddystone Company more than year ago, but so many delays occurred in the factories that the first completed shells were not shipped until about six weeks ago.
 The Eddystone Ammunition Corpo- ration was formed with nominal capital of $5O,O00 and several factory b+iildings. completed and under con- struction, by the Baldwin Works at Eddystone, Penn., were leased. $. M. Vauclain, vice president of the Baldwin Company, was elected head of the new corporation and an agree ment was made with the Baldwin Company covering the payment to the latter of stated sum for the lease of the buildings and land and also for each sum turned out. An Earfangement of a similar nature was made by the Baldwin management with the Remington Arms company of Delaware, which also leased buildings for the manufacture of 3,00O0OO rifles for Russia.
 The bankers holding the bulk of the Eddystone Corporations stock accord |ing to particulars learned in the finan- |ciaL district executed composite bond I for $10,0 0,000,000,' divided in proportion bt ostheir stock holdings and obligated Themselves to furnish sufficient funds l Ito carry the contract through. The Aorder was placed though J. P. Nor fgan & Go. 1 The Eddystone Corporation met | 9with difficulties almost from the start ] kof the work. The Russian govern l 3meRt, it is said, ordered numerous +changes in the shell specifications, and | Inspections were so rigid that deliv- ferries of finished shells were held back &day after day.
 The delays told on the patience of 1 the bankers and, finally when Russia Bought further bond to cover the $completion of the order the stockhold- <ers decided to abandon the task The l &Russian officials consented to the &ransfer of the contract when it was &nade clear that deliveries would be accelerated. The Baldwin Works #nad done much shell work for the British government and had an ample Force of trained workers. The de- @tails of the agreement provide that Bhe Eddystone Corporation sharehoId- PTS shall get back all the money they invested in the plant and material Vlth interest, and shall be relieved &rom their obligations under the bond.
 The Baldwin Works takes over the &ontract on a cost percentage basis
 IS reported that the original con-
 ract called for a percentage profit
 per cent. of the Eddystone
 corporation on the gross business. and |
 IS assumed that the Baldwin man. & &gement takes over the order at an-
 kroximately the same figure.
 It is understand that the work will
 e continued in the Eddystone plant
 Ncept for such portion as the
 baldwin Works switch to it's factories
 pr the sake of speeding up deliveries
 large amount of raw and semi
 nisAed material including. parts of
 nells, is represented by the work a1
 eady done.