The Detroit times., 1917-06-18
US. TO SET
PRICES ON
SHIP steel.
Manufacturers NJ II S t
Sell Product At
Fair Profit
COSTS ARE UP TO
DEFENSE COUNCIL
GOethals Will Not Take
Responsibility For
Price Setting

WASHINGTON, June l8.-Ihe
government will fix prices paid for
steel used in constructing Americas
food feet.
On the heels OF reports that steel
companies have boosted prices and
plan TO make enormous steel profits
on contracts with the government.
II was learned today that any such
move viii be met with sharp check
For the last 10 days the raw ma
terials committee OF the Council Of
National Defense has been working
with the heads OF the country's big
steel manufacturers fixing on "rea-
sonsble price" for steel plates and
shapes
The price determined upon--ex.
pected within a few days-will. II
approved by the president. be the
enc paid by the shipping board in
steel ship construction. II the prices
determined by the steel companies
are not agreeable 20 President Wal.
son the government has the author
ny now 10 commander all steel pro-
ducts and II necessary the plants
that are turning them out
Reports OF threatened high prices
OF steel 20 the government grew out
OF the tentative agreements reached
by the officials and steel concerns
for certain contracts for ships.
These contracts provided that the
government pay approximately sos
a ton for steel plates while the navy
Is paying only about $50 a ton.
Goethals explained the situation,
however, today as follows:
THE agreement 10 pay four and
one-half cents a ton for steel plates
and three and onehalf for steel
shapes was one previously reached
by Los Angeles firm with a steel
company at Birmingham, Ala. The
figures were taken merely az a
working basis. for other construo-
ton plants but no other contracts
have been let on tina, basis.
The question OF steel prices has
been left entirely 20 the raw mate
rails committee OF the advisory com.
mittee OF the Council OF National
Defense They will determine what
~ fair price will not assume
that possibility. Their prices viii
be the ones used by us in our con
tracts. II tho tentative agreement
10 furnish steel at four and one-half
cents for plates and three and one
half cents for shapes is found by the
committee 10 be too high, the figure
will be reduced in the contract. IL
II is found too low. We will pay the
difference"
Chairman Denman, Of the shipping
board, last night refused 70 approve
steel contracts tentatively let BY
Goethals al a price OF sos per ton.
The navy. he said. is getting steel
at se5.
WASHINGTON. juno 1s--The Sc
attic Construction & Dry Dock com
pany was awarded contracts for 10
atnnl steamships complete first
and second 10 he delivered June.
1918: the third IN July, 1918; fourth
and hnh in August. 1918, sixth.
September 1918. seventh and
eighth in October. 1918: ninth In
November. 1918. and tenth in De.
cember, 1918.
The Foundation company. New.
ark, y. J., was awarded contracts
for 10 wooden hulls, the FIRST TO be
delivered March /, 1918. and one
every 10 days thereafter Ten
wooden hulls were awarded to the
Groton Iron works. Noank. Conn.
II promises to deliver the FIRST hull
in five months after receipt OF lum-
Der FOR kecls and one hull every
fortnight thereafter
Two wooden bulls will he built by
The Ship Construction q Trading
company. Stonington, Conn. Its
first Is to be delivered by Feb. ~,
1918. and second month later.