The Medina sentinel. [volume] (Medina, Ohio) 1888-1961, 1917-02-02

to the United States Government, tO
the basis Of prices established before
| the war began Il
we agreed-if THE Government WQnllll
abandon It's plans forsa Federal plAnt---
| to make armor for our Nary et eAp
price the GoverMme,., itself might eess-s
sider tGJT. II
Our ordnance plants are 1t 9h9 a.
Dosal OF the nation at d fair OpeE ting
| cost, plus : small margin. Thus N Sans
the Government lnvestmsnt Aiap ~
probation.
One Of the special needs y the Ksw
navy is sixtssnrInch gsinz guns sixty
| feet long and capable Of hurtling =
| 1000 pound shell with such power and
accuracy as to hit 4 30 fOpt sQpere tar
get fifteen miles away.
We have undertaken Voluntarily e
construct. 1t 4 cost Of 81 ,CoC. 900. .,
plant fitted to build sixteSn-inch guns
Under no conceivable circumstances
can orders which We may receive foE
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 upoA
which the English bid was made. II
should be remembered. however, that
this bid was for specific she'll, sam
pies Of which are being sent over Tor
tesla test not yet made.
Two years ago we took an order for
24OO fourteen-inch armor-piercing shells
at contract price Of $76S,OOO, to be
delivered within a certain time 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-pIate at a certain velocity on i'm,
pact. 1t is impossible to toretell tne
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
duce in any quantity, shells which VIII
meet these novel tests. In fact, wt
know Of no process OF projectile-mak'
me through which 1t is possible topro
duce III quantities. shells which IN
conform to the requirements.
The result Is that up to now on that
contract of S7GS,0OO. we have pnt int'
actual operating expense $447.S81.. aud
have been penalized for nonldelivefy
$495.744 a total Of .S943.625. with NJ
receipts whatever
Such was the experience III the High
Of which we were called upon recent
ly to bid for sixteen-inch shells.
We bid on these shells at approx
mateIy the same rate per pound a.
that Of fourteen-inch shell contrac
Of one year ago upon which the Gov
ernment awarded contracts.
We have not the slightest idea wha
profit there will be In the making 9
these shelis. We do not know tina
there will be any, There Is no certain
ty that it would berpossible for US Z
deliver a shell to meet the test.
For officers In the Navy to assum
that any bid made under such condi
tions Il "exorbitant'' Is utterly unfair.
We bid on the new pattle-cruiser
sums which Navy department experts
after examination OF our hooks. foim
would yield profit Of less than te
per cent, We agreed to assume risk
. for increased costs Of materials and u
bor that made It possible that thes
contracts might yield no profit wha
ever
The costs run beyond the amount NJ
propriated by Congress on the basis 9
the cost estimates made q year agn
And because shiItbuilders could NJ
alter the inexorabIe cost facts and r
duce bids to early estimates Of Il
Navy Department. the prices are cale
"exorbitant
1t would he real advantage to
relieved Of this iiavalconstrnction I'll
profit from II cannot possibly amour
4 to much. and the responsibility is emo
nous
We have determined 70 make tn
,ffer 10 the Amcrlcau t'nvprnnlent.
III sOn will build two Of the battl
cruisers IN Government navy yard
we viii build the other two at the a
J certained cost .. building the ships
the Government yards. without adc
tional expense or commissions Of al
kind We viii also contract to ha'
our ships ready for service ahead
the f;nvprnt.nu sb'rs