The evening leader. (Tarpon Springs, Fla.) 191?-19??, 1917-01-29

to tire United States Government, to
the basis of prices established before
the war began.
We agreed if the Government would
abandon its 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
the Government investment and de-
probation.
| One of the special needs of the new
navy is siXteen-inch guns-guns sixty
! feet long and capable of hurting
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,CO0, a
| plant fitted to build siXteen-inch guns
Under no conceivable circumstances
can orders which we may receive for
this plant pay even fair return on
| the investment.
Considerable comment has been made
upon the fact that a 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 on order for
2400 fourteen-inch armor-piercing shells
at a contract price of $16S.O00, to be
| delivered within certain time or we
had to pay Il large penalty.
! The only specifications for making
these shells are that they shall be
| of n certain size and must pierce
armor-platp IT IL certain velocity on i'm
| pact. 1t is impossible TO foretel the
exact conditions Of the tests
We had made large quantities of shells
in the past which had been accepted.
But in pa, II. this particular order the
Department altered the angle at which
the tested shells must pierce armor-
plate The result. however. has been
absolute inability on our part to pro-
duce in any GrIntity. shells which viii
meet these novel tests. In fact, we
know of no process of projectie-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.0OO, we have put into
actual Operatin. expense STAT ISL. and
have been penaliZed for non-delivery
S495. 744, IL total Of 1913, 625.. with no
receipts whatever.
Such was the experience in the light
of which we were called upon recent
iy to bid for SiXteen-inch shells.
We bid on these shells at approx
mately the same rate per pound as
that of fourteen inch shell contract
of one year ago upon which the Gov
eminent awarded contracts.
We have not the slightest idea what
profit there will be il the making of
these shells. We do not know that
there will he any. There is no certain
ty that il would be possible for us to
deliver 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 hid on the new battle-cruisers
sums which Navy department experts.
after examination of our books, found
would yield a profit of less than ten
per cent. We agreed to assume risks
| for increased costs of materials and la
Dor. 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
'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 10 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 addi
tioLal expense or commissions of any
kind We will also contract to have
om ships ready for service ahead Of
the Government ships"