The Washington herald., 1917-01-22
DANIELS SCORES
SHELL BUILDERS
AS UNpATRIOTIC
Navy Head Says American Mu-
milton Men Would Imperil
Defense Program.
ARGUES FOR u. S. PLANT
Domestic Projectiles Were Poor
Char.es Studied Price
Boosting.

In a vigorous attack on American NUM-
tons makers. Secretary of the Navy DAN
iels last night declared that only relief
by government munItion manufacture
prevents the fmperiling of the entire pre-
paredness program. The Secretary is
sued a public statement, replying to
criticisms directed against the award OF
Of Hadhelds & Co.
The statement criticised in no uncertain
terms the attitude of certain American
manufacturers, declaring that their ac-
tions lent color to the oft-repeated charge
that Preparedness is a synonym for
profits and not patriotism" The secre-
tary declared that the American concerns
had failed Tn either improve their prod
uct or reduce their prices as they should
have. In his statement he said:
Would Favor U. s. Makers
The department wishes to give all it's
orders 20 American manufacturers when
ever they quote reasonable prices and fur
nish shells that meet navy requirements
Nothing but the utter failure OF the most
patient negotiations and appeals to the
patriotism of the little group OF steel
manufacturers which have a practical
monopoly Of this business, have made It
imperative for the government to build
a projectile factory and give q contract
to a foreign bidder.
The Bethlehem Steel Company con-
trOlled by Mr.. Schwab, which has been
filing the papers with advertisements
criticising the Navy Department, admits
in its latest advertisement that though
1t was two years ago awarded a contract
for 8, 500 900 of shells, It has not yet made
shells to meet the requirements of the
Navy Department Until 1t Is able to
fiji its contracts 1t does not become the
Bethlehem Steel Company to criticise the
Navy Department for awarding contracts
to manufacturers who can make shells
that meet the tests"
Secretary Daniels expresses deep dis
appointment that the American manufac-
turers have failed to profit by past ex-
periences and scale their bids to meet
foreign competition. and that foreign
competitions from manufacturers already
wellnigh swamped with orders from their
own home governments even at the mo-
ment Of issuing the bids involved in the
death grappIe OF the European war.
ImperfIs Defense Program
Il regard the attitude of these COM
panies In his matter and other matters
as most unfortunate" continued the Sec
retary of the Navy, "and were there no
relief. through competition either by the
government or by other more patriotic
firms, would feel that they were putting
our entire program of preparedness in
peril. In urging the necessity for our
tremendous programs OF naval develop
ment in Congress, found that the most
serious obstacle to contend with was the
feeling Of many Congressman that the
whole matter of preparedness was a de-
liberately organized campaign on the part
OF manufacturers of war material to
obtain enormous contracts at fabulous
prices. I did not share in this opinion" 4"
The Secretary then asserts that the
campaign of the American munitions
makers to boost prices was continuous
and unremitting effort. He says that
steadily their prices for the Il shell,
the big-gun shell OF the modern Dread
CONTINUED ON PAGE TWO.