Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-01-22
Says Bethlehem Steel Conn.,
pany Admits It Cannot Pro-
duCe Article to Stand Test
of Naval Experts
BRITISH COMPANY BID
ENORMOUSLY CHEAPER
Saves Government 5000 on
Each ProjeCtiIe; Federal.
Plant Absolutely Necessary,
Says Secretary

N NosSiao fouEHAL SPECIAL LtAsEp WtRNI
Washington, Jan. 21.-Secretary
Daniels issued a statement today ex-
| planning and defending his action in
awarding to Hadfields. Limited. a
British munitions company, contracts
for large number of navy armor-
piercing projectiles at a price about
$500 each below the lowest American
bid. The statement is in reply to pub
lished comment upon the contract,
which, Mr., Daniels says, convinced
me that a concise statement of the ex-
perience of the department in obtain
ing shells equal in quality to those
used by foreign navies at a reasonable
prices, is necessary to enable the pub
lie to understand what has been going
on.
Not TO Cut Steel Prices.
Referring to report in certain trade
journals, that the British government
had urged Hadfields to seek this con-
tract for the purpose of creating panic
in the American steel market, and a
resultant reduction in the export price
of the American steel, the secretary
says that ''is patent absurdity," as
such an order would have no appre-
ciable effect upon the market.
Mr. Daniels says the Bethlehem
Steel company, which "has been filling
the papers with advertisements criti-
cizlng the department" admitted in
one of these publications that 1t had
failed to make satisfactory shells on a
contract awarded two years ago.
Criticizes Bethlehem.
Until it is able to fill its contracts" :"
he adds, 'it does not become the
Bethlehem company to criticize the
navy department for awarding con-
tracts to manufacturers who can make
shells that meet the tests. | regard
the attitude of these companies in this
and in other matters as most unfor-
tunate and were there no relief
through competition either by the gov
eminent or by other more patriotic
firms, l would feel that they were
putting our entire program of pre-
paredness in peril. The department
wishes to give all its orders to Ameri-
can factories whenever they quote
reasonable prices and furnish shells
that meet navy requirements. Moth
ing but the utter failure of the most
patient negotiations and appeals to the
patriotism of the little group of steel
manufacturers who have q practical
monopoly of this business have made
it imperative for the government to
build projectile factory and give
contract to a foreign bidder"
Forced Former Reductions.
The statement reviews the depart
ments dealings with American shell
makers during the last few years to
show that bids from the British con-
cern previously had been instrumental
in compelling a reduction in price for
furnished to this govern
ment. The financial loss to the gov
in that connection has been
it says, and adds:
What has been made clear. how
ever, is the failure of the companies
manufacturing projectiles with no
spur of competition to drive them on
to keep pace with the improvements
in the quality of armor- piercing shells
that were being made abroad. A diff /
ference in the price of shells cannot
be expressed in dollars and cents. In
Periority of weapons of defense when
The fate of the battle may easily de-
pend upon this single element cannot
possibly be expressed by any amount
Of money, however large"
Mr.. Daniels declares that the argu-
nent used by those who oppose the
construction of a navy projectile plant |
which contends that the result will be |
o crush American industry is without |
lalue.
Il have never had in mind" he says, |
"a navy plant of greater capacity
one shift of men, than one
bird of the total amount required by
he navy"