Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-03-16
PRIVATE BUILDERS LOSE
PROFITS TO HELP NAVY
Accept 10 Per Cent From Govern.
nient i'm Preference to 80 Per
Cent From Outsiders
HUGE CONTRACTS AWARDED
Believed to BE Largest Single Order
for Fighting Craft Ever Given by
Any Nation-Newport News Gets
Two Ships.
LBy AssocInted l,re-..I

WASHINGTON. March t5.-Contrncts
for what is believed 10 he the largest
single order for fighting craft ever
given by any nation We're placed to-
day by the Navy Department Private
builders undertook to turn out four
great battle cruisers aud six scout
cruisers. and pledged themselves to
keep 30 per cent Of their working
forces on navy construction
In response TO an appeal to their
patriotism. by Secretary Daniels. the
major shipbuildcrs have agreed to ac-
cept 10 per cent net profit on the battle
cruisers. whose cost will represent
about S1G,000.000 Of the total sum in
volved in to-day's contracts y fifth
battlc cruiser will be built Mt the
Philadelphia Navy-Yard. so as not to
strain the limit of facilities Of private
establishments.
The builders ure bcsiegcd with Of
fcrs OF merchant work, and are get
ting as high as 30 per cent profit on
these jobs, with more work in sight
than they can do. They have placed
their facilities at the disposal OF the
government, making il unnecessary for
the President to consider employing
authority to commander plants
Both classes of cruisers ordered to-
day are new types of naval archtec-
ture, and are designed for speed OF
thirty-fve knots an hour
CONSTRUCTION WILL DE
FASTENED no LIMIT
The scouts were awarded on bids
submitted yesterday. prices ranging
from SJ.950. 900 TO S5.e9G.00o. and stipu-
lated time Of delivery from thirty to
thirty-two months. Under the emer-
gcncy clause Of the naval appropria- :
tion bill, construction will he FASTENED
To the limit, the government footing
the bill for additional cost.
The battle cruisers. the fixed limit
Of cost OF which is $4,000. 900 per ship.
exclusive Of speeding-up expense, were
placed as follows:
Newport News Shipbuilding and Dry
Dock Company. two ships; Fore River
Shipbuilding Corporation, one shin:
New York ShipbuildinS Company. one
ship.
With the exception OF the New York
company. each private builder will have
to install new ways and machinery for
the huge craft. The government will
bear its fair share OF this expense.
-Four of the scout cruisers will be
built on the Pacific Coast, and the other
two will he built by William Cramp &
Sons. Philadelphia. Cramps and the
Union Iron Works may he called upon
also 10 build a number of dcstroyers
OF the authorized building program.
there remains to be contracted for
three brcadnoughts. thirty-eight sub
marines, fifteen dcstroycrS and several
auxiliary vessels. Bids viii be opened
early in April on these craft and at
the same time orders will be placed
for more than 100 coast patrol boats.
WILL. GREATLY ENCEED FIGURES
ron HULL AND MACHINERY
The ultma-r cost to the government
of the ships ordered to-day will cx-
cecd by many millions the iigures
given FOR hull and machinery. 1t will
cost S!65,i52 per ship to arm and cuuip
the scouts, and $5.337,SiO additional for
each battle cruiser.
The shipbuildcrs having made hnan-
cial sacrifices TO meet the governments
needs. Secretary Daniels Is seeking
similar agreements with the con-
tractors who supply material and
equipment to go In the ship.
The plans for the three i2,000-ton
Drcadnoughts are not completed. At
least two may have to go to govern
ment yards.
In addition. considerable number
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