The Watertown weekly leader. [volume] (Watertown, Jefferson County, Wis.) 1912-1917, 1917-01-24


We agreed-if the Government would
abandon it's plans for Federal plant
| to make armor for our Navy at any
price the Government itself might con-
slider fair.
Our ordnance plants are at the dis
| posal of the nation at fair operating
cost, plus a small margin, thus saving
probation,
| One Of the special needs of the new
navy is sixteen-inch guns-guns sixty
feet long and capable Of hurtling a
1000 pound shell with such power and
accuracy as to hit so foot square tar
get fifteen miles away.
We have undertaken voluntarily to
construct, at a cost of $4,500,00O, a
plant fitted to build sixteen-inch guns.
Under no conceivable circumstances
can orders which we may receive for
this plant pay even a fair return on
! the investment.
Considerable comment has been made
! upon the fact that British manufac-
turer recently bid less than American
manufacturers for sixteen and four
teen-inch shells for the navy.
am unable to state the basis upon
which the English bid was made. 1t
| should be remembered, however, that
! this bid was for specific shell, sam
| Piles of which are being sent over for
tesla test not yet made.
| Two years ago we took an order for
| 240O fourteen-inch armor-piercing shells
| at contract price of $76S,0OO, to be
| delivered within a certain time or we
| had to pay large penalty.
The only specifications for making
| these shells are that they shall be
| of certain size and must pierce
| armOr-plate at certain velocity on i'm
| pact. 1t is impossible to foretell the
exact conditions of the tests.
We had made large quantities of shells
in the past which had been accepted
Department altered the angle at which
the tested shells must pierce armcr-
plate. The result, however, has been
absolute inability on our part to pro-
dUce in any quantity, shells which will
meet these novel tests. In fact, we
know of no process of prOjectile-mak-
ing through which it is possible to pro-
duce in quantities shells which will
conform to the requirements.
The result is that up to now on that
contract of $76S, 900, we have put into
actual operating expense SAT- ISL, and
have been penaliZed for non-delivery
$495, 744., a total of $943 1926, with no
receipts whatever.
Such was the experience in the light
of which we were called upon recent
ly to bid for siXteen-inch shells.
We bid on these shells at approx
mately the same rate per pound as
that of a fourteen-inch shell contract
of one year ago upon which the Gov
ernment awarded contracts.
We have not the slightest idea what
profit there will be in the making of
these shells. We do not know that
there will be any. There is no certain
fty that it would be possible for us to
deliver a shell to meet the test.
For officers in the Navy to assume
that any bid made under such condi-
tons Is 'exorbitant'' is utterly unfair
We bid on the new battle-cruisers
sums which Navy department experts,
after examination of our books, found
would yield profit of less than ten
per cent We agreed to assume risks
for increased costs of materials and la
lbor, that made it possible that these
contracts might yield no profit what
ever
The costs run beyond the amount ap-
propriated by Congress on the basis OF
the cost estimates made year ago
And because shipbuilders could not
alter the memorable cost facts and re-
duce bids to early estimates Of the
Navy Department, the prices are called
l"exorbitant."
1t would be real advantage to be
relieved of this naval construction. The
profit from it cannot possibly amount
to much, and the responsibility is enor
nous.
We have determined to make this
offer to the American Government.
If you will build two Of the battle
cruisers in Government navy yards.
we will build the other two at the as
certained cost of building the ships in
the Government yards, without aG Ii
tional expense or commissions of s1y
kind. We will also contract to hs 7e
our ships ready for service ahead of
the Government ships"