New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-03-23
OFFERS TO CUT
ARW0R PRICES
Bethlehem Steel Co. Tells
House 1t Will Furnish
Plates at 1895.

Washington. March %. When the
House Naval Committee received to-day
the Tillman bill for government
srmor plate plant, which passed the
Senate yesterday. it also received a
proposal from the Bethlehem steel
Company TO cut the price Of amor
from the present price Of si25 ton
20 $685..
This offer was made 20 the Senate
committee and ignored. I'm the face
Of threats after the Senate committee S
refusal to entertain the proposal that
the armor makers would raise the price
il the bill passed. the company's re-
newed offer caused much surprise. The
PROPOSAL was submitted by Presidest
Grace OF the Bethlehem company, who
repeated his statement that II the gov
eminent erected a plant private works
worth more than $2o,00O,OOO would be
made useless, and continued:
The Bethlehem Steel Company, a.
together aside from its financial inter
ests. recognizing its obligation as a
citizen, and in order that its position
may be clearly understood. now desires
formally TO submit the following prop
ositon TO the Federal government:
Offers Armor at $685..
we will manufacture one-third, or
such additional quantity as may be
awarded to us, OF the amor plate re-
ouired for the contemplated fve-year
naval programme. estimated at approx
mately 10000 tons. at price OF $500
per ton Tor side armor. as compared
with the price Of $l25 now obtaining.
"The proposed price is lower than
has been paid by the government for
more than ten years.
"lf the FOREGOING price is not sstis-
factory, we will agree % permit my
well known firm OF chartered account
ants or the FEDERAL Trade Commission.
10 inventory our plant and make care
ful estimates of the cost Of nsnufact.
ure. With that data in hand We will
meat the Secretary OF the Navy and
guarantee 20 manufacture amor ut a
tory 10 him. a. being quite as low az
the lowest price ~ which the govern
ment could possibly manufacture armor
on ITS own account after taking into
account all proper charges.
"Wc make the foregoing proposition
rather than have our plant put out Of
existence. We have invested. "a act
ually invcntoricd to-day. over s. 900, 900
i'm that plant. This figure does not take
into account tho large expenditures,
certainly S2.000000. for tho plants and
equipment which have been abandoned
on account OF becoming obsolete.
Getting More Abroad.
I've are to-day selling armor to the
United States government at a lower
price than England, Germany, France,
Austria and Japan arc paying, even
where tho government itself (Japsn)
has embarked in the business. 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 prevailing in any
foreign country.
steel prices arc continually going
up, and they arc to-day much higher
than has been the case for many years.
l1 spite of that, Wc offer TO make aruor
AZ a lower price than the United States
has paid for twcnty-ninc years. and VIC
agree 10 accept this price for the ncXt
five years We also call attention 70
the fact that though since the war
began We have been able I'm Europe TO
get almost any price VIC chose 10 ask
for ordnance. VIC have during the period
made no addition whatever TO the sell.
ing price 90 the United States govern
ment for any OF the ordnance products
which We manufacture"
Mr.. Grace denied that there had been
any conference between his company
and tho other armor plate companies
regarding the price of armor 10 be fur
ulrhcd 20 the government.
Chairman Padgctt said that he had
mailed TO all shlpbuilding companies
categorical questions "a 30 how many
drcadnoughts and battle cruisers they
could build at time
Mr. Grace declared that his company
could build dreadnought or battle
cruiser within two years and a subma-
rinc IN about five months. lie said that
the Bethlehem company controlled the
Fore River Shipbuilding Company. at
Quincy, Mass: the Union Iron Works.
at San Francisco, and the Maryland
steel Company. and that there was no
limit 20 shipbuildins possibilities at
any OF these plants.