Mansfield mirror. (Mansfield, Wright County, Mo.) 1908-1957, 1917-02-01
TO BUILD SHIPS
At COST PRICE
Bethlehem Steel win Make O.
for 10 Uncle Sam.
BIOS on IS INCH NAVY SHELLS

No chancs For Profit In Them Under
Present Tests. Grace Says-possib'e
Explanation Of the Pr,ees Made by an
English Firm Which Bids Under Al
American Manufacturers.
Speaking recently before the Terra.
pin Club Of Philadelphia, Eugene q.
Grace. President Of the l.rlhiehem
Steel Company, said in part:
In \ peculiar sense Bethlehem Steel
serves the American people.
For example. though we have been
able to obtain in Europe almost any
price, We have adhered, in our charges
to ire United States Government, to
the basis Of price, established before
the war r:aa.
We agreeh-if the Government would
abandon its plans for II Federal plant
to make armor for our Navy al any
price the Government UseN might on
slider fair.
Dur ordnance plants are at the dis.
pOSal OF the nyt ion ut II fair operating
cost, plus = small margin. thus saving
the Government Investment aud de-
probation.
One OF the special needs OF the new
navy is sixteen inch guns go guns sixty
feet long and capable of hurtllns a
1000 pound shell with such power aid
accuracy MS to lit II 10 i."t square tar
get fifteen miles away.
We have undertaken voluntarily to
construct, ut II cost or Si.o.n.obo. 4
plant lifted to build Sixteen-inch guns.
Under no conceivable circumstances
can orders which We may receive for
this plant pay even Il fair return On
the Investment.
Considerable lie comment has neen made
upon the fact that II british manufac'
turer recently bid less than American
manufacturers for sixteen and four
teen-inch shells for tue navy.
nm unable to state the basis upon
which the English hid was made. II
should be remembered. however, that
this bid was for II specific shell. sam
pies OF which are being sent uver tOr
tesla test not yet made.
Two years ago we took an order fot
24QU fourteen Inch nrInor' piercing shells
at d contract price OF SIGS,oOO, 10 be
delivered within a certain time or we
had to pay a large penalty.
The only specifications for making
these shells are that they shall he
Of "A certain size and must pierce
armor-plate at a certain velocity On i'm
pact. 1t Is Impossible 10 i"Ietell the
exact conditions Of the tests.
We had made large quantities OF shells
IN the past which had been accepted
But In placing 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 quantity. shells which will
meet these novel tests. In fact, we
know OF no process Of proie"ti!c-mak-
Ing through which 1t is possible to pro
duce In quantities shells which will
conform to the requirements.
The resul, is that up I" now on that
contract OF $685. ONO. We have put Into
actual operating eSpense Si41 ssh. and
have been penali2ed for nun-delirery
$495. ia. n total Of S9i! SO. 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.
eminent 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 he any. There Is no certain.
ty that it would he possible for Us to
deliver Il shell to meet the test.
For officers In the Navy to assume
that any bid made under such condi.
tons Is "eIOrbitant' Is utterly unfair.
We bid on the new battle. cruisers
sums which Navy department experts,
after examination OF our books. found
would yield u profit Of less than ten
per cent. We agreed to assume risks
for increased costs of materials and Ia
Dor, that made 1t possible that these
onntrant. n,tnhf STtnl3 nm npnHt u,hnt
The costs run beyond the amount ap,
by Congress on the basis OF
the cost estimates made n year ago.
And because sliipbuilders could not
alter the inexorabie cost facts and re-
duce bids TO early estimates Of the
Navy Department, the prices are called
II would he a real advantage to be
relieved Of this naval construction. The
10 much. and the responsibility Is cnor.
nous.
We have determined to- make this
offer to the American Government.
eff o will bnild two Of the battle
'ruisprs In Government navy yards.
ne will build the other two at the az
,ertained cost OF building the ships In
he Government yards. without add.
.iOnal expense or commissions OF any
rind. We will also contract to have
)ur ships ready for serVi's ahead Of
he Government ships"
WHY look old when Mildrpdjna Hair