The Hawaiian gazette., 1917-02-13
STEEL CORPORATION
OFFERS A BARGAIN
Bethlehem Grants Ten Per Cent.
Reduction To Build Bat
tIeships


a ten per cent reduction in the price
Of steel granted to the government by
the Bethlehem Steel Corporation in re-.
Spouse to an appeal by the Navy de.
partment may enable the -four new bat.
lie cruisers authorized by congress to
be built within the $l6,500. 900 limit
for each vessel
The reduction follows an appeal from
Franklin ID. Roosevelt, assistant secre.
tary Of the Navy, 20 the corporation.
Previous estimates of costs of each
cruiser were $17, 100000, which IL
81 100000 above congress maximum
Authorization, and unless the cost price
of the cruisers Is reduced to a point un.
der the limit a great delay would
enspe, entailing the possibility that the
battle cruisers would never be built.
The navy department, failing to have
the ships built at the authorized price.
would have to ask for a higher author.
ization from congress, which might
take any action it desired upon the
request.
There is no suggestion in Assistant
Secretary Roosevelt : Telegram to the
steel company that the prices formerly
cited by the company were other than
fair, in view of trade conditions. The
whole tone Of his appeal is on patriotic
grounds.
WIN SEN steel To Rivals
II is in the same spirit that President
Eugene G.. Grace answers in telegram,
dated Friday. Mr.. Grace offers this
ten per cent reduction whether the con
tracts for one, two, three or four of the
new battle cruisers are awarded 10
the shipbuilding subsidiaries Of his
company, the Union Iron Works of San
Francisco and the Fore River Ship.
building Corporation of Quincy, Massa.
chusetts. He explained also he is will.
ing to sell steel at the ten per cent re.
duction to rivals Of his subsidiaries il
they obtain the contracts, or to the
navy yards; in short, he agrees 10 pro.
vide the steel for the battleships at ten
per cent reduction, no matter who
builds them.
Assistant Secretary Roosevelt's tele-
gram to Mr.. Grace, sent on Thursday,
was as follows:
- Referring TO your estimate to Fore
River for forging steel castings, turret
and rudder fittings for one battle cruis-
err, Navy finds shipbuilders' bids are
about 81 900 900 in excess Of limit Of
cost fixed by congress. In order to
avoid necessity asking congress for in.
creased appropriation, thus involving
delay and even possibility of not secur-
ing the increase or of repeal of author.
ization for construction. Department
is endeayoring to find ways Of reducing
the cost of construction.
Asked To Do Their Share
ssome Of the shipbuilde9s are meet
ing this situation in commendable
way. Are now In consultations here en-
deavoring to find further means Of re-
dueing the cost Of construction Navy
appeals to you to do your share. What
reduction will you accept over your
quotation to Fore River, If Navy buys
the material for four ships and gives
you the contract for ALI Please state
a percentage reduction If convenient to
you. Promptest possible answer will
be much appreciated. I" M
Mr.. qrace's answering telegram fol-
,lows: r4I .ET ,Etr-. -
"Your telegram of fourth in refer
ence to the price we have quoted Fore
River Shipbuilding Corporation for
forgings and castings required in con.
struetion Of battle cruiser, We appre-.
ciate the position in which the depart
ment finds itself on account of the high
cost Of construction, as reflected in
both labor and materials, as against
the appropriation congress has pro-
vided for the building Of the battle
cruisers. We felt the prices we had
given were reasonable, considering gen.
eral commercial conditions. r!1ss..
t.tIt Is. our disposition always to do
our part, and to meet you in this direct
appeal we will be willing to make a
reduction of ten per cent in the prices
already quoted. This to apply alike
for one, two, three or four ships. We
estimate if other interests meet you in
the same spirit that you can effect the
desired saving. We trust the navy de.
partment viii recognize the position we
are taking in this instance and reflect
same in future relations"