New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-11-23
Midvale Steel Gives
Up 100000 Arms
Contract
EFFORT TO KEEP
TRADE AT HOME
Munition Makers Here Get
Warning from
Dawson

Confirmation Of q report that the
British government had obtained the
REIMBURSEMENT Of s600o0. 900 NUM-
tions contract by the Midvale Steel
and Ordnance Company was taken In
many quarters yesterday to indicate
that the days of some Of Wall Streets
most thriving war babies arc num-
bered.
That the Allies have worked into a
position where they are almost indus
trially independent Of the United
States became matter of common
knowledge three weeks ago, when II.
p. Dawson. of ]. P. Morgan & Co.. re-
turned from Europe. Mr.. Dawson
brought with him the news of what
England. France and Russia have been
accomplishing behind the lines. and
also a warning.
Warning to Americans
Unless American manufacturers of
munitions decided to relax their
terms, he predicted, the Allies would
probably withdraw a great share of
their war trade.
Great Britain and France" said Mr..
Dawson, have developed their manu-
featuring resources in a way that sur
passes belief. To-day they find them
selves we'll equipped and able to pro-
vide not only for themselves but in a
large degree to assist their allies"
1t may be that the busy munitions
makers of the United States did not
see fit TO line their exactions with the
warning; or possibly the Allies even
then had resolved to turn their NUM-
tions millions into their own new in
dustries. At any rate, IL is made
known by persons in close touch with
the commissioners handling the British
contracts in this country tnat efforts
are being made both by England and
France to bring about general
cancellation Of contracts for arms and
ammunition now standing.
The purchases of shell steel, regard
less Of any plan the Allies may have,
will increase, Of necessity, as the de-
mand for finished goods decreases. It
was reported yesterday that the United
States Steel Corporation had taken or
derg for 100000 tons at about $50 a
ton for the first quarter of 1918. The
price ranges between $50 and $40
through the last half Of 1871
Orders Held in Allegiance
So far have the negotiations pro-
gressed that French orders are being
held in allegiance in several Ameri-
can factories. II is recalled in the
Street, too, that only short time ago
the Anglo Russian commission bought
a controlling interest in the stock OF
the Eddystone Ammunition Company.
which had been organized by group Of
New York bankers to execute Allied
orders.
In both these contracts the BALDWIN
Locomotive Works had a royalty inter-
est. The royalties are waived with
the REIMBURSEMENT of the Midvale con-
tract. it is understood, and the Baldwin
concern in compensation is relieved OF
certain operating expenses for which
it was responsible.
The Midvale Steel and Ordnance
Company was not altogether unwilling
TO let the contract 60 by the board. for
it is said the profits had not proved SO
great as expected. The order on which
the British government obtained the
release covered 100000 rifles, and had
been distributed by the Midvale com
pany among various plants OF the Rem
inpton Arms-Union Metallic Cartridge
Company and the Winchester Repeat
ing Arms Company. ,
II is understood the Midvsle company
will be reimbursed TO the extent OIL
$40 900 900 for outlays thus far made
on the rife contract, but whether there
Is 70 be a further reimbursement cover
ing the 500. 900 900 spent In acquisition
of the Remington Arms Company is not
known. The company, however is 70
get a specific per rife pront on az
riHes above a million which may DC
manufactured st the Remington plant
at Eddystone under controi Oh inc
British commission.
NsA