The sun., 1916-11-24
ARMS PLANTS WILL
MAKE GUNS AT COST
Remington, winchester and
Midvale Compromise on
2,O0O,0 600 Rifles.
INSURED AGAINST LOSS
British Government Makes Ar
r~angement With Firms
Facing Deficit.

without profit. but likewise Insured
against loss. the Midvaie Steel and Ord
nance Company. the Remington Arms
Union Metallic Cartridge Company and
the winchester Repeating Arms Com
pany will complete the manufacture or
1000, 900 rifles for tho British Govern
ment as the result Of an agreement
reached yesterday.
These companies took contracts for
the manufacture Of 100000 rifles. In
anticipation Of large pronts. but in
each case the ventures turned out to
be extremely embarrassing. It 10 esti-
mated they have. up to date. delivered
100000 rifles. Finding themselves
burdened by the agreement. they made
overtures to the British Government for
q modification Of the contracts. The
compromise reached was said yesterday
to be very satisfactory to both parties.
A principal advantage. II was said.
was that by the new agreement the
companies will avoid the heavy losses
caused by the rigid inspection system
of the British Government. The exact
INK requirements VI iubpcStotb ~ b''N
by onfcials Of the companies as the
underlying causes Of their failure to
carry out the original terms.
fewer Rines Now Needed.
on the other hand. the British Gov
eminent Is glad of the opportunity to
cut the contracts from s.460. 900 rifles to
100000 for the reason that the In
creasing rre OF bombs n machine guns
Is making fewer rifles wanted. II Is
unlikely that any more rife contracts
will be placed In America. as II Is
estimated the 1000. 900. with h the
British plants can turn out. will be
enough.
The contracts originally involved the
expenditure Of 800. 900. 900. Under the
compromise Great Britain will pay
$40. 900. 900 to the three concerns to re-
imburse them for expenditures and Will
advance further sums II necessary to
insure them against loss.
Thomas L. Chadbourne. Jr.. OF the
law Arm Of C~hadbourne & Shores. In an
~nounclng the notifications In the con-
a said
THE Midvaie Steel and Ordnance
Company, the Remington Arms-Cnion
Metallic Cartridge Company and the
Winchester Repeating Arms Company.
being the only three concerns In the
United States having contracts with the
British Government for the manufac-
ture Of rifles. employed me in the month
Of September to take mp with the British
Government the question OF securing a
modification of their rife contracts.
Terms Of the Compromise.
This negotiation has been concluded
90 ek> -nAln- - cnSnAs ~ on m rita,
has been ~crystallized In an exchange o
letters which provides for the execution
OF contracts by which the Government
will fully reimburse and protect eaci
company as to its actual expenditures a
we'll as Upon all contracts and agree
ments made by the companies for tn
carrying out Of the contracts as soon Al
the amounts due Hereunder can b.
a~scertained. except for buildings ant
fixed machinery owned by the com
panies. which can be devoted to thei
other uses.
Each company will agree TO continu
manufacturing rifles for the British
Government up to an aggregate o
2.o0O. 600 for all the companies includinI
those already delivered tthe origina
contracts having aggregated 100000
rihes), the Government paying the com
panies the amount OF further expendi
lures which the companies may he re
Quircd to make IN order 70 complete tn
manufacture OF such rifles. The com
panies are to receive a profit on rifle
manufactured by them in addition TO tn
total Of 1000. 900"
Dodge Out Of Midvale.
MarceIlus Hartley Dodge owns prac
tically all the stock Of the RemingtoI
Arms Union Metallic Cartridge Com
pany. amounting to $50. 900, 900. The cor