Bryan daily eagle and pilot. [volume] (Bryan, Tex.) 1909-1918, 1917-02-26

to the United States government, 70
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 al any
price the Government Wseu might con-
cider fotr.
Our ordnance plants are at the dis
posal Of the nation at fair operating
cost, plus small margin, thus saving
the Government investment and de-
probation.
One Of the special needs Of III, new
navy Is sIxteen-inch guns-guns sixty
feet long and capable Of hurtling q
1000 pound shell with such power and
accuracy as to hit 80 foot sqScre tar
get fifteen miles away.
We have undertaken voluntarily to
construct. at a cost Of $4,5O0OOO. q
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.
I am unable to state the basis upon
which the English bid was made. II
should be remembered, however. that
this bid was for specific shell. sam
pies of which are being sent over FOL
rltest-s test not yet made.
Two years ago we took an order fol
24OO fourteen-inch armor-piercing she'll
at a contract price Of s76s,0O0. to b
delivered within a certain time or w
+ had to pay a large penalty.
I The only specifications for making
e these shells are that they shall b
!. Of certain size and must pierc
A armor-plate nj certain velocity on I'm
:, pact. II Il impossible TO foretell tn
exact conditions Of the tests.
We had made large quantities OF shell
in the past which had been accepted
o But In placing this particular order tn
/ Department altered the angle at whic
'. the tested shells must pierce armol
n plate. The result. however. has bee
/, absolute inability on our part to pre-
|. ducc In any quantity. shells which wi
y y meet these novel tests. In fact. "
'. know OF no process Of projectilc-mal
nj ing through which II Is possible to PR
duce In quantities shells which wi
ie conform to the requirements.
/. The result Is that up to now on this
n contract OF s7Gs. 200. We have put Int
8 actual operating expense si47.ssi an
:. have been pcnalized for non-deliver
w. s4o5. IA. n total Of s9i3.625.. with .
receipts whatever.
Such was the experience In the ligl
nj Of which we were called upon recen
40 " TO bid for sixtccn-Inch shells.
A. We bid on these shells at appro,
"a mately the same rate per pound
=" that OF n fourtecninch shell contra
ny Of one year ago upon which the Go
eminent awarded contracts.
an We have not the slightest Idea VIII
profit there win be In the making
these shells. We do not know IN
there will he any. There Is no cerial
~ that Il would be possible for US
deliver n shell TO meet the test.
ii For officers In the Navy to assui
: that any bid made under such CON
tons Ia "cxorbitant' II utterly unfai
We hid on the new battlc-cruis'
sums which Navy department cxpcr
\ after examination of our books, fou
j would yield a profit OF less than
n per cent. We agreed to assume ri'
\ for increased costs Of materials and
Dor. that made II possible that tn
10 contracts might yield no prcht VIII
ever.
The costs run beyond the amount
propriatcd by Congress on the basis
the cost estimates madc>a year ago
N And because shipbuildcrs could
alter the memorable cost facts aud
ducc bids to early estimates OF
Navy Department. the prices are cal
"cxorbitant."
II would he a real advantage TO
relieved Of this naval construction.
profit from u cannot possibly amo
TO much. and the responsibility Is 81
mous
We have determined TO make
offer 10 the American Government
81 "if you will build two Of the hal
cruisers In Government navy ya
We will build the other two at the
ccrtained cost OF building the ship
the Government yards. without a
ticnal expense or commissions Of
Kind. We win also contract TO I
our ships ready for service ahess
10 the Government shire"