Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-06-18
u. s. Lets 81 NelU
Shipping Contracts

Continued from Page One
ing on reasonable price" for steel plates
and shapes
The price determined upon-expected
within a few days--wlll II approved by the
President, be the one protected by the Ship
ping Board in steel-ship construction.
II prices are not agreed to by the steel
companies agreeable to President Wilson.
the Government has the authority now to
commander all steel products and If neces-
sary the plants turning them out
Reports OF threatened high prices in steel
for the Government grew out of tentative
agreement reached between General Goe-
thals and steel concerns for certain con-
tracts for ships. These contracts provided
that the Government pay approximately $S5
n ton for steel plates while the navy is pay
ing only about $50 a ton
GOETHALs EXPLAINS
Goethals explained the situation, however,
today as follows:
THE agreement TO pay four and one-half
cents a pound for steel plates and three and
one-haf cents for steel shapes was one
previously reached by a Los Angeles firm
with a steel company at Birmingham, Ala.
The figures were taken merely as a work
Ing basis for other construction plans, but
no other contracts have been let on that
basis
THE question of steel prices has been
left entirely to the raw materials commit
tee of the advisory council of the Council
Of National Defense, They will determine
what Is a fair price, | will not assume that
responsibility. Their prices will be the ones
used by us in our contracts
III the tentative arrangement to furnish
steel at four and one-half cents for plates
and three and one-half cents for shapes is
found by the committee to be too high the
figure will be reduced in the contract If
&c md ffn 1ntAy rtst1 4n. ~
ence."
Regarding the charge that the prices
quoted are more than those paid by the
navy for steel, General Goethals said that
the navy is obtaining steel now at figures
contracted for in l916--approximately S25
ton less than those now quoted.
MAY ALLOW 10 PER CENT PROFIT
Cost and 10 per cent profit probably
will have to be the final basis Of settlement
Of the controversy.
The latest evidences OF friction between
Major General Goethals and the Federal
Shipping Board growing out of the refusal
Of Chairman William Denman, of the board
to sign contracts for construction on a basis
Of $95 a ton have emphasized to officials
here the necessity of legislation which will
give the President complete power to COM
mandeer steel and TO fix the price that will
be paid for 1t. 1t is understood today that
the President is making a careful investiga.
tion of the entire question and that he will
take steps at once TO end the friction and
restore harmony between General Goethals
and the board.
The position of Chairman Denman is that
the steel corporation and its auxiliaries
are gouging the Government He fatty de.
clared today that under no circumstances
VIII he consent to the payment of high
prices for the product of the big mills Con.
tracts already let have been on a basis OF
aVNT,H yfFs,I N,1Vv Q
sent back for revision by Mr.. Denman wher
hrst submitted at much higher rate
President Wilson considered the situation
sufficiently serious to forget for the momen
the food fight to call Chairman William
Denman to the White House for persona
conference. General Goethals tried to get ,
hearing from the President today also, bu
| previous engagements took up the Presi
| dents schedule completely.
Goethals, 1t was declared by high Off
cial today, is dissatisfied with his positio
as general manager Of the Emergency Flee
Corporation under Chairman Denman