Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-01-22
.SECRE TARY DEFENDS
AWARD TO HADF|ELD's S
Makes Singing Reply to Published
Comment OF American
SheIImakerS.
IAipEACHEs THEIR PATRIOTISM
Feels That by Their Failure to Fill
Contracts and Keep Step With
Progress They Would Put Entire
Preparedness Program i'm Peril.
lRy Assorin,ed rrcssl

BY Associated rrcssl
WASHINGTON, January 2l.-Secre-
tary Daniels issued n statement; to-day
explaining and defending his action in
awarding to Hadheld's. Ltd. British
nrnition company. contracts for
large number OF navy armor- piercing
projectiles at price about $500 each
below the lowest American bid The
statement is in reply to published com
ment upon the contract. which. Mr.
Daniels says, convinced me that
concise statement OF the experiences
equal in quality to those used by for
eign navies at a reasonable price is
necessary to enable the public to un-
derstand what has been going on
SECRETARY CALLS TT
"PATENT ABSURDITY"
Referring to report in certain
American trade journals that the Brit
ish government had urged Hadheld's to
seek this contract for the purpose OF
creating panic In the American steel
market and resultant reduction in
the export price Of American steel, the
secretary says that lis patent ah-
surdity." a; such an order would have
no apprcciablc effect upon the ma rket
Mr.. Daniels says the Bethlehem steel
Company. which has been filling the
papers with advertisements cri,Icizing
the department" admitted in one Of
those publications that it had failed
to make satisfactory shells on con-
tract awarded two years ago
Until il is able to fill it's contracts"
he adds, "it does not become the Beth
lehem company to criticize the Navy
department for awarding contracts to
manufacturers who can make shells
that meet the tests. ! regard the at
titudc Of these companies in this and
in other matters as most unfair. and
were there no relief through compe-
tition, either by the government or
by other more patriotic firms. would
feel that they were putting our entire
program of preparedness in peril. The
department wishes to give all OF its
orders to American manufacturers
whenever they quote reasonable prices
and furnish shells that meet navy re-
puirements. Nothing but the utter
failure of the most patient nccotia-
tions and appeals to the patriotism of
the little group of steel manufactur-
crs which have a practical monopoly of
this business has made il mDcra-
tive for the government TO build 4
projcttilc factory and give a contract
to a foreign bidder"
REVIEWS DEALINGS
WfrH SHELL. MAkEuS
The statement reviews the depart
mcnt's dealings with American shell
makers during the last few years 10
show that bids from the british con
cern previously had been instrumental
in compelling n reduction in price for
proJectilcs furnished to this govern
mcnC Tho financial loss tn the gov
ernment in that connection has been
important. it says, and adds:
what has not been made clear. how
ever. is tho failure OF tho companies
manufacturing projectilcs with no spur
Of competition 10 drive ihcul uii 10
keep pace with The improvements in
the quality OF armor- piercing shells
that were being made abroad y hif.
ference in the price of shells can he
expressed ~ dollars and cents. In
feripriy OF weapons Of defense when
tho fatr OF the battle may easily do
peud on single element. cannot pos
sih,y he Expressed 10y any amoUnt of
nancy, however large,
Mr.. Daniels declares that the argu-
mcni used by those who oppose the
construction OF - navy pr"jectilc plant.
who contend that tho result viii hc
to crush American industry, is without
value.
u have never had in mind" SAYS lc
~ navy plant of greater capacity.
working one shift OF men. than ono
third Of the total ariouut required tH
the navy. The two thirds left for tho
private manufacturers with our new
ships in commission will hc greater
than the whole amount or a few years
ago. only in case OF an utter failure
or tho parts of tho private manufac-
turcrs 10 keep their product abreast OF
the times or TO quote prices in any
way reasonable, would ii be necessary
for the navy by working three shifts
Instead Of ono TO manufacture enough
material to cover our entire needs"