The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1917-02-09

Nteei mid IN part:
In q peculiar sense Bethlehem Steel
serves the American people.
For example, though we have been
able to obtain la Europe almost any
price, we have adhered. In our charges
IN the United States Government to
the basis Of prices established before
the war began.
We ~agreed-if the Government would
shandon its plans Tor q Federal slant
II make armor Tor our Navy at any
:pice The Government iiseij nigh. con-
sider fair.
Our ordnance plants are at the dis
pQsal OF the nation at a fair operating
cost, plus a small msrgiE. thus saving
the Government Investment and de.
probation.
one OF the special needs of the new
navy is sixteen iuch guns-guns sixty
feet long and CAPABLE of hurtling a
1000 pound she'll with such power and
accuracy AS TO hit II 80 foof square tar.
- fifteen miles away.
We have undertaken voluntarily to
construct, at 4 cost OF $+.JU,.ON. q
plant fitted to buiid sixteen inch guns.
Under no conceivable circumstances
ran orders which we may receive tor
this plant pay eve q fair return Oh
the investment
considerable comment has been made
ulion the fact tiHt Il British manufac.
tnrer recently bid less than Americas
manufacturers FOR sixteen and four
i'"r.iHch shells Or tie navy.
J ain unable 10 state the ss sis upon
which the English did was made. II
should be remembered. however. tia,
this bid was for a specific shell. sam.
pies OF which are being sent over for
iest-a test not yet made.
Two years ago we took All order Tor
2tU fourtccn-inc, armor- piercing she'll,
at a contract price OF S56S,ND0, to 10
delivered within q certain time or We
had to pay A large penalty.
The ouly specifications for making
these shells are that they shall he
ot a certain size and must picrce
srmor- plate At a certain velocity ON i'm.
pact. II Is impossible to ~foretelI 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 pierre armor-
plate. The result. however, has been
absolute inability on our part to pro-
duce IN any quantity. shells which will
meet these novel tests. In fact. we
know ~ no process of proiectiie-mak-
ing through which, it Is pos sible to pro.
duce in quantities shells which viii
conform Ia the requirements.
The result is that up to now OF that
contract ~ s1Gs.0U0. We have put into
actual operating expense S+t7.sSi.. and
have hcen pcnaliHed for non-delivery
Si95.744. y total OF s0tS.6o5. with no
receipts whatever.
Snch was the experience In the light
OF which we were called upon recent !
lv to bid for s~ixtecn-Inch shells.
We bid on these shells at approx.
mately the same rate per pound az
that Of a fourteen.inch shell contract
or me 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 he any. There Is no certain.
I. that it would be possible FOR us to
a she'll to meet the test.
For officers IN the Navy to assume
that any bid made. under such oo,tli .
tioUs is 'cxorGitant' is utterly unfair. ,
We bid on the uew bnttlecruiscrs
sums which Navy department experts. [
after examination Of our books. found c
would yield u profit Of less than ten I
per cent. We agreed to assume risks
FOR increased costs of materials and In f
Dor, that made il possible that these :
might yield no profit what. ,
p
The costs run beyond the amount an. L
Iropriated by Congress on the basis OF II
he cost estimates made Il year ago. Il
And becauSe shipbuilders could not I,
liter the ineyorahlc cost facts and re. CT
luce bids tn early estimates Of the
>"NA department, Tue prices are called
eSOrhitant" re
1t would he a real advantage to be III
eIieved OF his naval construction. The ar
from it cannot possibly amount pl
. much and the responsibility Is enor. az
nous.
-Ne have determined tn make this >.
her to the American Government. :"
III YOU will build two OF the hattie ID
ruisers in Government navy yards. "
re viii build the other two at the "a Bs
ertained cost OF building the ships In Al
ne Government yards. without addi. tie
onal expense or commissions of anv tn,
ind, We will also contract TO have IN
ir ships ready for service ahead a, ~.
10 Government shins."