The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-09-13
NYE WARNS OF
BID COLLISION
ON NAVY SHIPS
Excessive Price on Cruisers
Draws Criticism of
Investigators.

BIZ Scripps-Horard Newspaper Alliance
WASHINGTON. Sept. 13-An ur-
gent warning was issued today by
Senator Gerald Nye CR. n. D.
against that he called the danger OF
collision among warship bidders.
Senator Nye. chairman OF the
Senate Munitions Committee which
Investigated naval shipbuilding this
year, pointed to figures just dis
closed by the Navy Department.
The recent bids for l0,000-ton
cruiser on a fixed price basis.
we're SI7920 900 by United Ship
building and Drydock Co; 17600,-
600 by Bethlehem Shipbuilding;
$1,000 900 by Federal Shipbuilding.
and s15.525. 900 by Newport News
ShipbUilding
This" said Senator Nye, "once
again demonstrates the large need
for the legislation the committee
has proposed providing for greater
safeguards against the ganging up
of bidders against the government.
TheSe bids are outrageously high.
No Hard Hitting" Competition
Testimony before the committee
convinced the members that there
is enough evidence of pre-arrange-
men to the cruiser bidding Of 1927
to justify a statement that it was
collusiNely arrived at by at least two
of the three bidders
cofI "a Guidance
Showed that in 1888 on contracts
worth s1300O000O to the private
shipbuilders there was no hard hit
ting competition among equally de-
sirous bidders able TO take on the
work"
II is reported that the Nays re-
lection this week of bids on the
10.000-ton cruiser was due to dis
satisfaction at the prices quoted,
which set ne7 nigh.
Navy Yards Get Awards
OF the present program q %
ships. II were awarded to Navy
yards in compliance with the law
that alternate ships be built by the
government. But the Navy de-
clines to disclose the estimates made
for the II ships by the Navy yards.
The munitions committee investi-
gated government costs and found
that in 1888 the Navy yards were
1881 900 below the highest fixed
price" bid of the private builders. |
Yet the successful 1888 bid on the
fixed" basis was almost $4,000 900
under the current low bid.
The highest of the cruiser bids |
rejected this week was that of the |
United Shipbuilding and Drydock /
Co. The committee. in analyzing evil !
dence concerning the 1888 bidding, /.
said it notes the reference to /
United Drydock Co. securing |
through Dave Hogan. secretary to |
Mr.. McCooey. prominent Brooklyn /
Democrat, the award of $6,S00,000 |
in destroyers in 1888"
New Bids Requested
The committee remarked that
"the matter of national defense
should be above and separated from
lobbying and the use of political in
fluence by self-interasted groups,
and that it has not been above or
separated from either of them"
Senator Nye said today that he
recalled 1.-The advice OF the Navy
Department to the shipbuilders TO
get together and avoid bidding
against each other.
The present cruiser bids" he |
added. indicate quite clearly that |
this advice is still adhered to by the /
shipbuilders."
He congratulated the Navy De-
partment for asking new bids. 1t
would have been greatly to the |
country's benefit and advantage had |
the Navy done the same in 1888" |
he said. !