The Washington herald., 1917-01-25
ENGLISH SHELL
MAKERS BARRED
IN NAVY AWARD
Admiralty Forbids British
Firm to Manufacture Pro-
jectiles for U. S.
SCHWAB'S HAND IS SEEN
Believed Head of Bethlehem Steel
Persuaded Allies to Prevent
Transaction.

A bombshell fell In the Navy Depart
ment yesterday when a dispatch from
London announced that the British ad-
miralty had refused to permit Had
fields, Ltd. to accept the contract award
ed them by Secretary Daniels for sixteen
and fourteen inch projectiles.
Navy experts heard the news with
amazement, while representatives of
Bethlehem Steel and other American
shellmakers were gleeful The British
action was utterly unexpected, inasmuch
as Hadfelds were not allowed to bid on
the navy contracts until they assured
Secretary Daniels that their home gov
ernment would not block the deal
Two theories were framed to account
for the admiralty's reversal of position.
One is that Charles NJ. Schwab, presi-
dent of the Bethlehem Steel Company,
and big munition maker for the allies,
persuaded the British officials to do him
favor"
The other is that, since Great Britain
has established conscription for NUM-
tion workers, it would be unfair and de-
moralizing to force them to make shells
for foreign nayies.
Department up a Tree"
The Navy Department is frankly up a
tree" and in view OF the bitter wranglins
that has taken place between Secretary
Daniels and Mr.. Schwab in the press,
it feels that it has been Inundated.
Il can take no action until have the
oficial announcement" said Secretary of
the Navy Daniels And then I'll have
to think a little" he added
The award OF the contract had. already
been signed, but the actual signing of
the contract itself had not yet been con-
summated. Neither had Hadhelds filed
the required Is per cent bond, to be for
feited in case OF failure to deliver.
Two courses were open to him, Secre-
tary Daniels declared. One was to ad-
vertiSe for new bid, which would be GER
tain to bring out Ie same bids recently
submitted by Ams rican manufacturers,
and declared by the Secretary Of the
Navy to be Outrageous" thesother to
hurry the proposed government proJectile
plant to completion and manufacture the
shells independently.
It was intimated that the latter course
would be pursued.
No Hurry for Shells.
We now have a greater shell reserve
than ever" said the Secretary, but we
wanted an even greater supply. There
~ no great hurry for these shells, al
though. Of course. we should like to have
them as soon as possible. 1t will be
rnonths-before the American navy will
have a battleship that can use 1s-inch
shells. Our own projectile factory prob
ably will be finished within a year and
e half"
The government plant can be put In oper-
alton and actually carry out the contract
awarded to Hadffe+ds before the shells are
reeded, 1t was pointed out. Secretary
Daniels is believed to be averse to
awarding the contract at any figure over
that offered by Hadfelds. The navy pro-
jectile plant will itself be able to turn out
shells at figure only a little larger than
that OF the English concern.
No proposal now put forward by Had
fields to deliver the shells after the war
would now be considered.
"Sucn a proposition could not be ac-
cepted by this government" the Secre-
tary said. How do we know when the
war is going to end "
Before coming to any definite decision
as to his course Of action Mr.. Daniels
viii ask the advice of President Wilson
on the subject.