Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-03-22
BETHLEHEM CUTS
PRICE OF ARMOR
CONTINUED From First Page.]


tain the proposal. that the armor
makers would raise the price if the
bill passed. the company's renewed
offer caused much surprise. The pro.
posal was submitted by President
Grace of the Bethlehem Steel Com.
pany, who repeated his statement that
If the government erected a plant, pri-
Nate works worth more than twenty
million dollars would be made use
less. President Grace's proposal con-
tinued:
Proposed Rate Much Lower
The Bethlehem Steel Company, al
together aside from It's financial in
terests, recognizing its obligation as a
citizen, and in order that its position
may be clearly understood, now de-
sires formally to submit the following
proposition to the Federal govern
ment:
I'VE will manufacture one-third, or
such additional quantity as may be
awarded to us of the armor plate re-
quired for the contemplated five-year
naval program estimated at approXi-
mately 12O, 600 tons at a price of 1895
per ton for side armor, as compared
with the price of $425 now obtain
ing.
The proposed price is lower than
has been paid by the government for
more than ten years.
IF the foregoing price is not Salts
factory we will agree TO permit any
well-known firm of chartered account
ants, or the federal trade commission
10 inventory our plant and make care
full estimates of the cost of manufac-
ture; with that data in hand we will
meet the Secretary of the Navy and
agree 10 manufacture armor at a
price which will be entirely satisfac-
tory to him as being quite as low as
the lowest price at which the govern
ment could possibly manufacture
armor on its own account after taking
into account all proper charges.
Rather Than Dismantle Plant
1--WE make the foregoing PROPOSE
ton rather than have our plant put
out of existence. We have invested,
as actually inventoried to-day over
S7,0OO,000 in that plant. This figure
does not take into account the large
expenditures, certainly $2,000,000 for
the plant and equipment which have
been abandoned on account of becom-
ing obsolete.
I'VE are to-day selling armor to
the United States government at Il
lower price than England, Germany,
France, Austria and Japan are pay
ing, evon where the government itself
(Japan) has embarked in the busi-
ness. Not only is that true but the
specifications of the United States are
much more rigid, and the wages paid
are very much higher than those pre-
vailing in any foreign country.
Steel prices are continually going
up, and they are to-day much higher
than has been the case for many
years. In spite of that we offer to
make armor at "a lower price than
the United States has paid for 20
years, and we agree to accept this
price for the next five 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 choose to ask for ordnance, we
have during the period made no ad-
dition whatever to the selling price to
the United States government for any
of the ordnance products which we
manufacture"
House administration leaders plan
to call up the bill as soon as the army
reorganization and immigration bills
are out of the way. Its passage is be-
lieved assured.
Despite the strong opposition of
Senators Penrose and Oliver, of Penn
sylvania, who led the fight against
the measure, the bill was passed by
the Senate last night by a vote OF
SIS to 23.
Pcnrose Fights Proposal
Pointing out that three private
armor plate companies, the Bethle-
hem. Carnegie and Midvale, were To-
Gated in Pennsylvania, Senator Pen
rose said in an address to the Senate
that there had been no real competi-
tion in the manufacture of armor
plate and that there could not be from
the very nature of the business
At committee hearings on the meas
ure, officers of the Bethlehem and
Midvale steel companies, two of the
three concerns which furnish armor
to the government. appeared and the
threat was made that their plants
would have to be dismantled as soon
as the government entered upon the
business, leaving no source of supply
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