Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-06-19
STEEL AT S56 A TON
FOR GREAT FLEET
Government Obtains Tentative
Price, Until Final Figure Is
Set by President.
ACTION FORCED BY DENMAN
Leads to Renewed Talk Of Diff
ferences With Goethals Over
Shipbuilding Program.

price of $50 q ton was obtained by tho
government to-day on steel for the
great feet OF merchant ships to be
built by the Shipping Boards Elmer
Ecncy Fleet Corporations Previous
contracts. let before Congress gave tho
power to commander supplies. called
for steel at s95.
To-day's contracts went to the Dow
ney Construction Company. OF New
York, for ten vessels. and were signed
by Chairman Dcnman, OF the Shipping
Board. after he had refused to approve
them when they first came to him from
Major General Goethals general man
ager of the feet corporation. naming a
price OF sa5.
The price OF s56 will stand. Mr.. Dem
man announced to-day. until final
figure is set by the President or by
some agency he may designate.
Since the government now has the
power TO force lower price" said Mr.
Denman. Il could not go on approving
contracts at SOS. II the price of s56
is raised finally, the steel plants will
be refunded: If 1t is lowered. the gov
ernment will benefit by the reduction"
y base price of sa5 was agreed on
between General Goethals and tho
steel plants some weeks ago. 1t was
10 stand until final price was ar
ranged. but Chairman Dcnman said to-
day he had declined to sign more con-
tracts at that figure because he did not
care to set a precedent that would en-
barrass the board when final ncgotia-
tions for "A price basis were begun. The
navy is obtaining steel al about s65.
.Ef.t.t,r,a ,x-vIr Enu,
DETERMINE FINAL PRICE
The country's steel plants IT was said
to-day accepted the price of $50 on
condition that it's acceptance would not
determine tho final price to be paid.
steel men. it is said, estimate the cost
of production at around s45. but they
have been able to sell all the plates
they could produce at from So5 TO 3l25.
The commercial demand. however, will
cease with the guNtfnments requist-
,ioninl; OF shipbuilding and shpyard
facilities.
The committee on raw supplies of
the Council of National Defense is
making estimates for the feet corpora
tion now steel prices. General
Gocthals has said he is ready to leave
the whole matter of prices TO the COM
mittec, but MIR. Denman said the COM
mttee would not fix prices. although
it would advise.
Talk of differences between Mr. Den
man and General Gocthals over the
shipbuilding program was revived
here to-day with Mr.. Denmans fore
ing down the price of steel In voting
"A $500. 100000 appropriation for ship
building, Congress authorized the Prcs.
ident 10 exercise powers granted in
tho act through any agency he might
designate.
Both Mr.. Dcnman and General
Goethais, it is said. are anxious that
the other should not be designated to
carry out the acts provisions. Gen
eral Goethals, il is understood, feels
he cannot accomplish half as much as
he might If hampercd by the Shipping
Board with powers to direct his efforts
Mr.. Denman. il is said. believes the
Shipping Board should be given full
powers.
QUESTION AS TO POWER
OF SIGNING CONTRA CTS
AS president of the Emergency Fleet
Corporation. Mr.. Dcnman signs all con-
tracts made by General Goethals, and
there is a question of how that would
be arranged If General Goethals were
given absolute powers.
MIR. Denman saw President Wilson
to-day, but afterwards ne said that
only questions dealing with the inter
national shipping situation were dis
cusscd.
General Goethals is to see the Pres
ident later in the week. 1t is thought
unlikely that the President will make
any move until next week.
MFR. Denman said the shipbulding
plan would be hurried in every man
ner possible.
Take all the steel ships we can
build" he said. "and double their num-
Der. then add the 1000 wooden vessels
somebody dreamed about, and we can
not keep pace with German submarine
sinkings if they continue at the rate
they were going in April or even at
last weeks rate. The situation is so
bad the imagination won't keep pace
with it as far as only a few months
ahead