The daily star-mirror. (Moscow, Idaho) 1911-1939, 1917-02-05
TO BUILD SHIPS
AT COST PRICE
BETHLEHEM STEEL WILL MAKE
OFFER TO UNCLE SAM-BIDS ON
I6-INCH NAVY SHELLS

Speaking recently before the Terra,
pin Club Of Philadelphia, Eugene G.
Grace, President OF the Bethlehem
Steel Company, said in part:
In a peculiar sense Bethlehem Steel
serves the American people.
| For example, though we have been
able to obtain in Europe almost any
price, we have adhered, in our charges
to the United States Government, to
the basis of prices established before
the war began.
We agreed-if the Government would
abandon its plans for Federal plant
to make armor for our Navy at any
price the Government itself might con-
slider fair.
Our ordnance plants are at the dis
posal Of the nation at fair operating
cost, plus a small margin, thus saving
the Government investment and de-
probation.
One of the special needs of the new
navy is sixteen-inch guns-guns sixty
feet long and capable Of hurting
6OOO pOuuO SACll Win cdSh POUCl AA0
accuracy as to hit so foot square tar
get fifteen miles away.
We have undertaken voluntarily to
construct, at a cost of $4,500,OO0,
plant fitted to build sixteen-inch guns.
Under no conceivable circumstances
can orders which we may receive for
this plant pay even fair return on
the investment.
Considerable comment has been made
upon the fact that 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 a specific shell, sam
Piles of which are being sent over for
tesla test not yet made.
Two years ago we took an order for |
2400 fourteen-inch armor-p piercing shells |
at a contract price of $76S, 900, to be |
delivered within certain time or we
hadeto 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
n the past which had been accepted.
But in placing this particular order the
Department altered the angle at which
he tested shells must pierce armor-
llate. The result, however, has been
lbsoiute inability on our part to pro-
luce in any quantity, shells which will
meet these novel tests. In fact, we
now of no process of projectie-mak-
ny through which it is possible to pro-
luce i'll quantities shells which will
onform to the requirements.
The result is that up to now on that
ontract OF $76S 900 we have put into
ctual operating expense SAT SSI.. and
ave been penalized for non-delivery h
495- 744.. total OF S943, 625.. with no .
eceiptS whatever. q
Such was the experience in the light Y
( which we were called upon recent y
to bid for sixteen-inch shells. y
We bid on these shells at approx y
lately the same rate per pound as y
lat of fourteen-inch she'll contract a
one year ago upon which the Gov a
,nment awarded contracts. v
We have not the slightest idea what u
rofit there will be in the making of y
lese shells. We do not know that v
lere will be any. There is no certain y
that it would be possible for us to v
aliver a shell to meet the test. ~
For officers In the Navy to assume v
lat any bid made under such condi- ~
ms is 'snxorhitant' is utterly unfair