Evening star., 1937-06-18
NAVY YARDS BIDS
ON Z SHIPS LOW
Service May Build Both Its
Giant New Battle Boats
Itself,

The possibility was strong today that
the Navy might construct both of its
new battleships in navy yards-at
Philadelphia and New York.
This was considered likely, in view
of the lower estimates submitted by
the navy yards. compared with the
figures that private shipyards pre-
sented at the bid opening at the Navy
Department yesterday.
At the same time, the Associated
Press said the State Department has
sent notes to Great Britain. Japan,
France and Italy. asking if each would
consent to limit the big naval guns to
14-inch. rather than 16-inch weapons
While the three European powers have
previously expressed their willingness
to abide by the 14-inch gun, Japan
previously declined to enter such an
international pact.
A Toxic dispatch indicated that
Japan has decided to reject President
Roosevelt's proposal for gun limita-
ton, quoting an authoritative person,
Unless Japan officially reyerses its po-
sition. officials here believe the Navy
may adopt the l6-inch gun. The bat
tleships U. S. S. Colorado. Maryland
and West Virginia are already equipped
with 16-inch guns. Each of these bat
tleships is equipped with eight of the
big weapons.
Private Yards Bids.
The bids opened from private ship
yards show that the Bethlehem Ship
building Corp. Of Quincy, Mass, SUBJ
mitted a fat proposal to build one bat
tleship for s59900,000 in 48 months,
with delivery at the Boston, Mass,
Navy Yard, with an alternative figure,
for adjustments for rising labor and
material costs Of 49,870,0Oo The New
port News Shipbuilding g. Dry Dock
Co. OF Newport News, Va, did not
submit lump sum bid, in view of un-
certain conditions and the likelihood
Of changes In the design. but under
the alternate, it bid $46,2l2,50O, with
suitable adjustments in costs The
New York Shipbuilding Corp. OF Cam
den. N. j., offered delivery at the Phil
adelphia Navy Yard in 48 months for
55,875,824 and under the alternative,
it submitted s47,s29, 1894.
Estimates from the navy yards, for
building one battlship, made public
late yesterday by the Navy Depart
ment. said that the Philadelphia Navy
Yard can construct the vessel for
$36,560, 800, while the New York Navy
Yard says 1t can do the job for $37,-
265,843.
Secretary Swanson explained that
in addition to the figures submitted
some $2o, 900 900 will have to be added
to these costs for ordnance, armor,
armament ana various types of equip
ment, to be supplied by the Govern
ment, if they are built either In
private or Government shipyards.
The Associated Press quoted Rep
resentative S. Otis Bland of Newport
News, Va, as saying that he be-
lieved it would be fairer to all con-
cerned and would save the Govern
ment money in the long run" to award
the battleship construction jobs on
the basis of cost, conditioned on wages
and materials.
Newport News Qualification.
With the bid Of the Newport News
Shipbuilding d Dry Dock Co. this
memorandum was submitted:
I'VE have given careful and though
full consideration to the question OF
making an offer to construct the
ship for fixed price. We regret that
we cannot, with safety to our COM
pany, make such an offer because
Of the difaculties and risks, particu-
larly in view Of the magnitude and
complexity Of the construction and
the long period Of time involved, to-
gether with the probability Of changes
which may be made in the design of
the vessel
"A similar view is taken by the
surety companies which have de-
clined to furnish a performance bond
in any adequate amount on a fixed
price basis"
In submitting its alternative bid the
Newport News firm declared: This
bid is made on the condition that the
contract will provide that In event
the price adjusted in accordance with
the methods to be set forth in the
contract should not be adequate to
reimburse the contractor for the cost
to 1t OF constructing the vessel, then
such further adjustments and pay
ments shall be made As shall equal
the deficiency and prevent . loss to
the contractor under such contract
plus 3ls per cent of such adjusted
cost to cover, among other things,
the diSallowances that may be made
under the administration Of the Vim
son act and other items which the
private yard must meet"
Bond for the Newport News arm
was furnished by the American Surety
Co. of New York, while the Bethle-
hem and New York Arms each SUBJ
u,itted certified checks Of $1,000