New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-07
Steel and Torpedo Firms
Agree to Fair Prices
on Orders
NavalLaw Invoked
To Force Reduction
Bliss Company to Supply
Torpedoes at Below
Current Rate

pTOUtctllHG III 'H' "cI- was "N"'''
shown to-day. wnen Secretary Daniels
effected a saving Of Sls,000.O00 in tie
navv's expenditure FOR steel for this
wear. and another saving OF more than
s.. 200 900 on one order for long range
torpedocs. represented by price agree
mPnts made with manufacturers to-day.
Under the new naval law passed by
Congress the President has the right
70 fix a reasonable price for all NUM-
tiors. II the manufacturers DO not ac-
cent the Federal estimate the govern
ment may take over and operate their
plants. The government. however, is
lot disposed to invoke this penalty,
and so far has had no cause TO do so.
The agreement with the brass trade
effected by the Council for National
Defence was the first step in the cam
paipn to hold down excessive war
profits and stamp out any possible
charge that the war was engineered by
capitalists for their own profits To-
davis engagements with a dozen steel
manufacturers, led by the United States
steel CORPORATION and the J.. W. Bliss
Company. 81 Brooklyn, torpedo makers,
marked the second and third steps.
Prices Below Current Market
The schedule Of prices for the year
SUNNY Of steel agreed on at confer
crce between Secretary Daniels and j.
A. Farrell. president of the United
states Steel Corporation. is the same
the navy paid for its 1916 consignment
and considerably below the current
market. Details as 70 the amount or
exact prices we're net made PUBLIC.
In the case Of the torpedo order, MIR.
Daniels brought the manufacturing con
ccrn-the +. w. Bliss Company, OF
Brooklyn-to terms By invoking several
DAYS ago, for the first time. the new law
authorizing the government to set
reasonable price for navy material and
compel private plants TO abide by them.
MIR. Farrell acted in the steel price
negotiations as vice-chGiTman OF the
snecial committee OF the American Iron
and Steel Institute. recently appointed
by the Council of National Defence to
facilitate the securing Of construction
material.
s15.000.o00 TO BE Saved
After the conference Secretary Dan
:els issued this statement:
"An agreement was reached with re-
spect to prices for material for the
shipbuilding programme OF the navy
ard additions 20 tho naval stations.
This agreement provides that there is
10 he no increase IL prices over those
paid for material used in the 1916 naval
programme. These prices arc suostan-
TALLY lower than current market prices,
and it is estimated that they involve r
saving Of approximately SlS.0OO,oVo on
the tonnage required for 1917 over the
prevailing prices.
Through voluntary agreements pre
viously effected with copper, brass. mu-
nitions. shipbuilding and other con.
Germs. the department already has saved
many times tho amount represented IN
te-day's steel and torpedo agreements.
Except IN cases OF necessity. Secretary
Daniels will not invoke the new law
permitting seizure of plants not offer
ing 10 turn out supplies at reasonable
price.
Although officials made it known sew
eral days ago that the government had
exerted it's new authority to prevent
exorbitant war profits. 1t was not an
rounced until to-day against what com
pany the action was taken
Government Fixes Price
The department hrst asked, II was
said. that the Bliss Company reduce its
torpedo bids, and when II was found
that reduction OF $500 per torpedo
was the best that could be secured by
negotiation. MIR Daniels ordered the
Ordnance Bureau TO determine the cost
Of production and add reasonable
profit. thus fixing a fair price.
The bureau fixed price OF Sl,5'S per
torpedo under the original bid submit
ted. and the Secretary Informed the
Bliss Company that il would be re-
oured to fill the order promptly al the
new figures.
The result of invoking this new pro-
vision Of the naval bill" Mr.. Daniels
said. has saved the department S2.193,-
500 on one order. We expect all mu-
milton makers to furnish the govern
ment what il needs at prices which in
vestigation shows 10 be reasonable. SC
il Will not be necessary TO take over
any plants
The letter addressed to the Bliss
company, under date OF April 4, read as
follows:
THE +. W. Bliss Company. Borough
of Brooklyn, New York City.
Gentlemen:
The Secretary Of the Navy directs
me 70 say, in view OF development
since the conference AT which them
cost was agreed upon. he expects that
the price for torpedoes OH your con
tract with the Navy Department will
be changed as follows:
MARK VIII from S9,l64 10 1892, anc
Mark X from S7,sl6 to s6.l40.
These prices have been determined
upon in consultation with this bureau
are reasonable. and undoubtedly will
result in an eminently fair and equita,
bic profit to the company.
"You will therefore proceed with the
manufacture Of these torpedoes, giving
them priority over all other work. anc
will do your utmost TO deliver them
within the time specified in the con.
tracts under consideration.
1.-THE department feels that il car
expect from your company nothing les.
in the way of cooperation with it IN
the PREPARATION for war. and believe.
that you will Immediately act in the
manner indicated above.
Every truly yours.
"RALPH EARLE. Chief OF Bureau"
The Bliss company's representative,
came TO the Secretsry's Office to-day
and said the company would accept the
order al the price named and use every
effort to expedite the delivery OF the