Evening star., 1936-02-06


those of the Colt Patent Fireams Co.,
the Du Pont Powder Co.'S point
plant" the Pratt-Whitney Aircraft
Co., Chance Vought Co. and United
Airports, Inc, would cost approx
mately $18,O00,00O, the witness said.
He estimated reproduction of the
Colt plant for manufacture of machine
guns and small arms would cost
$3.50, ,585, if present conditions of the
Colt factory were considered. An up
to-date plant of this type, entirely
new, would cost s8,815,4l3, Spencer
said.
} He said reproduction of the Du Pont
plant as it stands, deducting depre-
citation, would be s1,334,100. In en-
tirely new condition it would cost
$2,563,o85
In connection with the powder plant,
he said, construction of an acid plant
at a cost of 81 ,O75,0O0 would be neces-
ssary.
Three Airplane Factories.
Construction of the three airplane
factories, at their deprecated value,
would cost $9,751,716. Entirely new,
they would cost s11,l08,938. Spencer
asserted.
The hypothetical feet building pro-
gram, the witness stressed, was adopt
ed solely as a basis for estimates and
Is unofficial" and "in no way SUBJ
scribed to by the Navy Department.
The four major" ships used as
the basis for figuring costs were one
battleship, one aircraft carrier, one
heavy cruiser and one light cruiser.
The committee brought out that
It would cost the Government approx
mately one million dollars less to
ibuild a battleship with its own facili-
ties than to give the contract to pri-
vate shipbuilders.
From this figure should be deducted,
however, taxes received by the Treas
ury from the shipbuilding industry,
Senator vandenberg. Republican, of
Michigan pointed out.
The committee had asked the Inter-
state Commerce Commission last
July to:
| /. Determine the cost of construc-
..tion or purchase of sufficient Govern
ment shipbuilding ways" to allow a
normal Navy building and repair
program.
2. Determine the cost of building
vessels in present Government yards
as compared to that of building them
In present private yards
8. In case 1t was found that suffi-
cient expansion of navy yards could
not be made with economy, to deter
mine cost of taking over sufficient ex-
listing yards to provide a capacity
which would enable the Navy Depart
needs.
4. Determine cost of reproduction
OF certain existing plants engaged in
the production of war materials"
Spencer said staff of men under
r. w. Amadon, assistant valuation
engineer of the Interstate Commerce
Commission, was assigned to the Navy
Department in connection with the
study. and received full co-opera-
ton" from naval officials
Purchase of Factories.
In explaining the deprecated cost
OF reproducing the munitions and air
plane plants, Spencer pointed out that
these estimates more properly should
apply to cost of purchasing existing
factories, rather than attempting to
build them in their present deprecated
state
Government records and q personal
inspection of navy yards at Portsmouth,
Va; Philadelphia, Brooklyn, Boston,
Squantum and Portsmouth, N. H.,
showed that present navy yard facil-
tiles afford ample space for expansion.
Inspections also were made of plants
of the Newport News Shipbuilding Co.,
the New York Shipbuilding Co., the
Du Pont Co. at Carneys Point, N. j.;
the Colt Co. at Hartford, Conn, and
the Pratt-Whitney Co. at East Hart
ford. Conn.
THE inspections fully substantiate
the information given by the Navy De-
partment that the required expansion
could be absorbed in active navy yards,
and that it would be unnecessary to
EDUCATIONAL.