The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1917-01-23

>Sse, PAob y e1ah AAA thuD lux
the Government Investment and de.
probation.
One Of the special needs of the new
navy II sixteen.inch gsns-guns sixty
feet long and capable of hurting a
1000 pound shell with such power and
accuracy ~ to hit q 10 foot square tar.
got fifteen miles away.
We have undertaken voluntarily to
construct, at 4 cost Of S4,5o0, 900, q
plant fitted to build sixteen.inc guns.
Under no conceivable circumsta noes
can orders which We may receive for
this plant pay even Z fair return on
the Investment
Considerable comment has been made
upon the fact that 4 British manufac.
turer recently bid less than American
manufacturers for sixteen and four.
teen-inch shells for the navy.
/ am unable to state the basis upon
which the English bid was made. 1t
should be remembered, however, that
this bid was for . specific shell, sam
Pies Of which are being seat ever for
tesla test not yet made.
Two years ago we took an order for
A0c fourteen-inch piercing shells
at contract price Of l76S. 900, to be
delivered within q certain ums or We
had to pay large penalty.
The only specifications for making
these shells are that they shall be
Of certain size and must pierce
armor-plate at certain velocity on i'm.
pact 1t is impossible to foretell the
exact conditions Of the tests.
We had made large quantities Of shells
In the past which had been accepted.
But In placing this particular order the
Department altered the angle at which
the tested shells must pierce armor.
plate. The result, however, has been
absolute inability on our part to pro-
auce in any quantity, shells which will
meet these novel tests. In fact, we
know Of no process Of projectile-mak.
Ing through which 1t Is possible to pro-
duce in quantities shells which will
conform to the requirements.
The result is that up to now on that
contract Of $78S, 900, we have put into
actual operating expense $447.ssl. and
have been penalized for non-delivery
$496, IA, 4 total Of $943,825 with no
receipts whatever.
Such was the experience In the light
Of which we were called upon recent.
! " t. bid for sixteen-inch shells.
We bid on these shells at approx
mately the same rate per pound as
that of q fourteen-inch shell contract
Of one year ago upon which the Gov.
eminent awarded contracts.
We have not the slightest idea what
profit there will be in the making Of
these shells. We do not know that
there will be any. There Is no certain.
ty that 1t would be possible for US to
deliver shell to meet the test
For oflcers In the Navy to assume
that any bid made under such condi.
tons Is "exorbitant" u utterly unfair.
We bid on the new battle-cruiseri
sums which Navy department experts,
after examinatio Of our books, found
would yield profit Of less than ten
per cent. We agreed to assume risks
for increased costs Of materials and la
Dor, that made It possible that these
contracts might yield no profit what
ever.
The costs run beyond the amount ap
propriated BY Congress on the basis OF
the cost estimates made year ago
And because shipbuilders could moi
alter the memorable cost facts and re
duce bids to early estimates Of the
Navy Department. the prices are called
"exorbitant"
1t would be real advantage to b.
relieved Of this naval construction. TIL,
prsAt from 1t cannot possibly amount
to much, and the responsibility is enor
nous.
We have determined to make thi,
Offer to the American Government.
EFF you viii build two Of the battle
cruisers in Government navy yards
We will build the other two at the a
csrtainsd cost Of building the ships 4
the Government yards, without alll
tional expense or commissions Of a,
kind. We win alss contract 10 hav
ear ships ready for sssvies ahsa4 .
ths osvsrnnsnt shipA"