The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-03-08
SHIpYARDS CUT
RATES FOR US.
Make Agreement With Dan.
iels to Accept Flat Profit
of 10 Per Cent.

wAsHINaroN. March s.--American
shipbuilders engaged on Government
work entered into an agreement with
Secretary Daniels to-day to accept new
contracts at 2 fiat rate OF 10 per cent.
net profit and pledged cooperation TO
the fullest extent of their ability in rush.
ing to completion the navy's construc-
ton programme.
Virtually all Of tho larger private
plants In the country were represented
In tho conference. The builders, who
have been netting from go to 80 per
cent. on merchant steamers, said they
were willing to turn to Government con-
tracts at 10 per cent. as patriotic duty,
and the Secretary on mis- part agreed TO
protect them from undue loss. AS
result, for the present At least the Gov
ernment will not consider exercising the
authority given by Congress to COM
mandcer plants.
The next step Of the department vii!
be 10 call upon builders not engaged IN
Government work 10 undertake. such
tasks as they are equipped to carry out.
For the most part this will consist OF
building submarine chasers and possibly
some destroyers. An understanding also
will! be sought to prevent yards which
are doing private work from drawing
men from those having navy contracts.
Data TO he submitted.
The companies represented to-day Will
furnish Secretary Daniels not later thah
Monday with schedules OF all CONNER
cial work in tRei: yards ~ for which
they have contracted. Details OF the
Capitalization OF each conccrn, ITS hNed
charges. material contracts, plans OF
plants and yards showing possibility or
enlargement and number OF employees
will DO included. A definite statement
OF the amount and kind Of additional
Government work that could be under
taken, with an estimate OF what might
be accomplished In years time, also
will be submitted by each builder.
The department is in correspondence
/ with steel makers and other manufac-
turers who supply material for navy
ships. Similar assurances OF coopera-
tion are expected from them. Mr..
! Daniels said he hoped TO Interfere with
commercial building just as little as
possible, but that nothing would be al
! lowed ito stand in the way OF supplying
! the navy with ships and munitions az
rapidly as is possible
Another element of the speeding up
programme Il the task OF getting labor,
| Samuel Gompers. president of the
American Federation Of Labor and Il
member OF the National Defence Coun-
ellis advisory commission. has called a
labor conference in this connection.
Proclamation to Follow.
All Of the conferences and other pre-
! liminary measures are preparatory to
the issuing by President Wilson of a
| proclamation declaring that national
! emergency exists which requires the use
| Of the unusual powers granted him by
Congress to hasten nava! construction.
After that step has been taken the
! 600, 900 provided for the purpose will
, be available to pay for high speed con-
struction. and the department will he
! In a position TO require any shipbuilder
or manufacturer to begin at once on
work assigned 10 him.
When the problem Of placing new
ships in yards best fitted to do rapid
work has boen studied the question of
| getting the ways clear OF merchant tom
mage now under construction will he
! taken up. Wherever possible such ships
| will be rushed to complexion and deliv-
cred to their owners. No new merchant
ships will be laid down, however. unit.
the needs Of the navy have been salts
fed.
In some instances Il Is expected that
because of the shortage OF skilled labor
and the demand for structural steel
merchant ships now on the ways would
be completed only to the point OF
launching and then held up while navy
vessels took their places.