The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-01-22
DANIELS TELLS
why HADFIELDS
COT BIC ORDER
Steel Firms Here Lacking in
Patriotic Duty, Secretary
Declares.


Washington, Jan. 22.-Secretary
Daniels last night gave out the fol-
lowing statement regarding the
! awarding of a projectile contract tc
an English firm:
Several newspaper comments on
the recent award of armor piercing
shells to an English firm, evidently
based on a complete misunderstand-
ing of the situation land a particu-
larly silly article in the Daily Metal
Reporter. of Jan. 10, convince me that
i a concise statement OF the expert
ences. Of the department in obtaining
shells equal in quality to those used
by foreign navies at a REASONABLE price
is necessary to enable the public to
4 understand what has been going on.
The Daily Metal Reporters edito-
rial writer advanced the amusing the
ory that Hadfields, Ltd, which is the
name Of the English Arm whose bid
! Tor armor- piercing projectiles has
! been accepted, put in their bid at the
instigation of the British government
to create panic. in the. American
steel market so that the British pur-
chasers of steel could batter down the
! prices.
i Aside from the patent absurdity
or attempting to use this small order
Tor such purpose, it is only needed
| to note that to sustain this theory it
/ is necessary to 4. assume that six
i months before the. war began Great
Britain was able to forecast the situa-
ton today, as Hadfields put in their
original bid for practically, the same
shells at that time. 4
Cut Price in 1914
when certain American manu-
/ facturers learned in 1914 that Had
fields would submit bids they reduc-
| ed their price from $500>to 1915 each
on 14-inch shells and on other sizes in
proportion, and secured the contract
at their bid, thus enabling the navy
to effect a saving OF, $1,O77,21O on
/ the one order
/ The department wishes to give all
| its orders to American manufacturers
whenever they quote reasonable prices
and furnish shells that meet navy re-
| quirements. Nothing but the utter
failure Of the most patient negotia-
tons and appeals to the patriotism of
! the little group Of steel manufactur-
ers which have practical monopoly
!. OF this business have made it imper-
ative for the Government to build a
l d
to a foreign bidder
The Bethlehem Steel Companv
i controlled by Mr.. Schwab, which has
been filling the papers with advertise
ments criticising the Navy Depart
ments, admits in it's latest advertise
i ment that though it was two years
ago awarded a contract for $780, 900
; worth Of shells, it has not yet made
shells to meet the requirements of the
Navy department. Until it is able to
fill its contracts, it does not become
the Bethlehem Company to criticise
the Navy Department for awarding
contracts to manufacturers who can
make shells that meet the tests.
Relief in Competition.
II regard the attitude of these
companies in this and other mat
tiers as most unfortunate, and were
there no relief through competition
either by the Government or by
other more patriotic firms, I would
feel that they were putting our en-
IRE programme of preparedness in
peril. In urging the necessity for our
tremendous programme of naval de-
velopment in Congress, found the
most serious obstacle to contend with
was the feeling of many Congress
men that the whole matter of pre-
paredness was a deliberately organ
lied campaign on, the part Of manu-
1acturers of war material to. obtain
enormous contracts. at fabulous
prices.
i did not share this opinion. The
splendid action on the part of some
other manufacturers in foregoing the
chance to obtain war; profits from the
material needed in the construction
or our new Programme have justified
my belief that the manufa cturers of
TINS country as whole are willing
TO assume their share in the pro-
gramme Of preparedness without alb
normal profits.
That other large manufacturers
OF war materials should persist in ex-
tracing the last penny of profit from
our urgent necessity gives a certain
color to the arguments OF those who
believe that preparedness is a syno-
nym for profits and not patriotism.
Inferior Shells.
There is, however, an even more
serious consideration in this particu-
lar matter of shells than that Of
money. In my hearings and else
1850 -AA0 AAAOASy oAu0 VI IL mas Dee0
put before the public. How the price
OF shells crept up. to $500 a piece in
1912; how the knowledge that the
Hadfelds were prepared to make a
reasonable bid in the latter part Of
1913 led to sudden cutting of the
price to 1915; how the elimination Of !
the English competitor by the war
resulted in an increase of 500 per
shell in the latter part Of 1914; how, i
still resting under the belief that no |
foreign competition was to be ex-
pected, some American companies |
raised the price to $3.50 in 1916-aH |
this has been made clear before
What has not been made clear.
however, is the failure of the COM |
panies manufacturing projectiles, |
with no spur of competition to drive |
them on, to keep pace with the i'm
provements in the quality Of armor-
piercing shells that were being made |
abroad. A difference in the price of |
shells can be expressed in dollars and !
cents.
"Inferiority of weapons of defense,
when the fate Of the battle may easily !
depend upon this single element can |
not possibly be expressed by any
amount Of money, however large.