Los Angeles Herald, Volume 26, Number 98, 6 January 1897 — THE PRICE OF ARMOR PLATE [ARTICLE]

THE PRICE OF ARMOR PLATE

As Shown by Herbert's Careful Inquiry •'THERE'S MILLIONS IN IT" Rut There Won't Be if Herbert Has His Way The Secretary Recommends the Offer of a Fair Prioe or Manufacture by the Government

Associated Press Special Wire WASHINGTON, Jan. s.—Secretary Herbert today transmitted to congress his reply to a provision in the last naval appropriation bill directing him to examine into the actual cost of armor plate and report to congress before January 1, 1897, and to make no contract for armor plate for the vessels authorized by that act until after the report was made to congress. This provision of the bill grew out of a heated debate in the house and senate in which the main contention was that the government w as paying too much for armor plates. The report is a very Important and In many respects a sensational document. The present cost of armor is $583 per ton. Mr. Herbert's conclusion is that the cost of material and labor is $198.70 and allowing for the cost of maintaining the plant and the nickel now furnished by the government and 50 per cent pio~t to the companies, the net cost to the government would be in round numbers MOO per ton. The Carnegie and Bethlehem companies have both expressed a desire to sell out their plants to the, government. Secretary Herbert in his reply to congress explains th* methods of investigation he pursued and the difiiculties which beset him. Both the Carnegie and Bethlehem companies declined last spring to give the information on the ground that they were not obliged to give to the public the secrets of their business, a position to which Mr. Herbert took exception on tht ground that the government had bound itself not to buy armor plate abroad, and therefore was entitled to know whether the prices charged were reasonable. The government inspectors at the works of the companies were examined. In November, 189t>, however, the Bethlehem Iron company sent to the department a statement of the cost of armor plate. The estimated cost of labor and material they fixed at $250; Interest on cost of plant. 178.29; maintenance and depreciation, $132.72; working capital, $33.55; total. $491.56.

This statement cor.rluded in these sensational words: •'When at the instance of the United States government we undertook this difficult ar.d vexatious business, it was obvious that this could not be prudently done for the order which the government thgf. desired to place, but we were given to expect such further orders as the government might have to give. "The obstacles and delays that always beset the pioneer had, however, been overcome when the government gave a private contract on the same terms as our to a rival concern which guided by our sacrifices, was spared the outlay of more than a million dollars. Aud now the government is urged to set up and operate one itself. Under the circumstances we now confirm the informal suggestions made to yourself and others, and state, that we desire to withdraw from this troublesome business by selling to the government, below cost, our entire armor-plate plant, which we believe to be the best in the world."

The letter Is signed by Mr. Linderman, the president of the company. Secretary Herbert severely criticises Mr. Linderman's methods of calculation. The Carnegie company also sent a letter about this time declining to give a full statement of cost, but giving the elements entering into the cost, exclusive of the shop cost; interest on the plant per ton of armor, $81.53; maintenance of plant per ton of armor, $67.91; loss by abandonment of plant when navy shall have been completed per ton of armor, $75,49; total, $224.96. To this the Carnegie company also adds $25 per ton for working capital. The Carnegie company also animadverted on the fact that the work of making armor had been undertaken at the request of the government and said It would. If the government decided to manufacture Its own armor, "be only too happy to sell Its plant at cost." The company. In case the plant was purchased, agreed to furnish steel in the ingot at the price fixed by three arbiters. The Carnegie statement is also criticised by tho secretary. Mr. Herbert calls attention to the fact that the company made no statements until he had returned from Europe, where he b«d procured two estimates of the cost of armor plate. "An inspection of the prices paid the American companies." Mr. Herbert says, "will Indicate that they agreed with each other as to prices. They divided the contracts of this government between themselves, each bidding lower on one-half of the armor required by the government." He speaks of the armor furnished by the companies to Russia at $249 per ton and later at $520 per ton, and concludes from a comparison of prices that there is at least a "friendly understanding or agreement among the powerful armor manufacturers of the world to maintain prices at about the same level." In summing up the secretary asks what will be a price sufficient to Justify manufacturers in maintaining armor plate plants. "These two contractors have already been repaid the cost of their plants, together with fair profits. The government is under no obligations to pay more than the cost of their original Investment, but should pay them enough to maintain the plants." It has been determined, he says, that the cost of labor and material in a ton of double forged nickel steel, Harveyized armor, including allowances for loss in manufacture, is $198.58. This comp- ises every element In cost, save maintenance of plant. He allows 10 per cent for this, and says It Is enough and more. He estimates the cost of the plants of the two companies to be $1,500,000 and an allowance of $150,000 per annum would be sufficient for maintaining the plants. He concludes that $250 may be taken as the cost of armor when the companies have fair orders for work. Mr. Herbert says it is not desirable that the government should manufacture armor, and for these reasons very liberal profits should! be offered to the present contractors to induce them to continue their plants In operation, and

he recommended, as a fair profit, 60 per oent on the cost of manufacture, which would be $375 per ton. The secretary further advises that the contractors hereafter furnish the nickel, which now costs the government about $20 per ton, making the cost $395 petton, or in round numbers, about $400. This figure, he believes. Is a fair and equitable price to pay for the armoi for the Wisconsin, Alabama and Illinois, the three new battleships last authorized. The report continues that this sum may seem a very large profit, but that some consideration must be given to the risks taken, and that the government demands the very best armor. The government is now paying $583 a ton for armor and with the nickel added, 583. At the prices suggested by Mr. Herbert $500,000 would' be saved on each battleship. Unless the present law Is changed tbe secretary could not obtain armor for the battleships already under contract if the companies refuse to bid within the limit congress might fix. To eliminate this difficulty Mr. Herbert recom mend's, that upon fixing a price for armor congress also authorize the secretary to erect or buy or lea<-e an armor plant or a gun plant if necessary. If this Is done better results, he believes, could be obtained.

GENERAL FRANCIS WALKER

Comes to the End of His Many Occupations A Life of Strange Vicissitudes and Many Successes Cut Shorrt by a Stroke of Apoplexy

BOSTON, Jan. s.—General Francis A. Walker, president of the Massachusetts Institute of Technology, a well known politician, economist and litterateur, was strcken with apoplexy this morning and died' soon afterward. General Walker was born in Boston July 2, 1840. After graduating from Amherst in 1?60 he immediately began the study of law, the first of a surprising number of occupations, In many of which he succeeded. When the war broke out he enlisted as major under Colonel Devins In the Seventeenth Massachusetts regiment and was rapidly promoted to the rank of brigadier general. He served on the staffs of Generals Sedgwick. Warren and Hancock. He was severely wounded at Chancellorsville ar.d captured at Ream's station and kept for some time In Llbby prison. In 1569 he was appointed chief of the bureau of statistics at Washington and organized and conducted the ninth census. In 1871, while retaining the office of superintendent of the census, Gen. Walker bees me United States commissioner of Indian affairs. He resigned the latter position In 1873 to become professor of political economy In the Sheffield scientific school at New Haven. In 1879 he organized the tenth census without giving up his lectures. He resigned the superintendency of the census In ISSI to become president of the Institute of technology. He also lectured a great deal. He went to Paris in 1878 as commissioner from the I'nited States to the International monetary conference. He was president of the American statistical association from 1882 and uresident of the American Economic association from ISS6. During the last few years General Walker has appeared occasionally before the public In addref ses and pamphlets on the question of bimetallism. General Walker was Invited by Pre-Pl-dient Harrison to reprewmt th.» United States In the International bimetallic conference in 1890. He declined the offer.

ON THE TURF Results of Races Run Over the Course at Ingleslde SAN FRANCISCO. Jan. s.—Weather fine at Ingleslde; track good. Summaries: Six furlongs—eMadow Lark won. Scimitar second, Pecksniff third; time, 1:17. Seven furlongs, handicap—Good Times won, Estaca second, Miss Baker third; time, 1:30%. One mile—Schiller won, Alvarado second, Yankee Doodle third; time, 1:42. Six furlongs—Potentate won, Miss Ross second, Brametta third; time, 1:14%. Seven furlongs—Benamela won, M*>balasca second, O'Fleeta third; time, 1:29%. One and an eighth miles—St. Lee won, Captive second, 'Ostler Joe third; time, 1:55*. INGLESIDE RACES. The following is the list of entries and weights for the races at Ingleside, which are posted at the Los Angeles Turf Club, 212 South Spring street. Commissona received on these races, and full descriptions of the events given. Races begin at 2 p. m.; first quotations received at 11 a.m. First race, five-eighths of a mile, maiden 3-year-olds—Link Hoy 110, Rightslde 107. Dutch Valet 106. Sardony. filly, 105, Harold Lindsay 105, Vlellelcht 105. The Tourist 105, Racina 105, Modestia 100. Play Boy 102, Cogent 111), The Sinner 102, Dacapo 102, Moreno 105. Tryst 106, Senator Baker 107. Second race, three-fourths of a mile, selling—Carrie U. 91. Moylan 101, Schnitz 101, Walter J. 98. Yemen fill. Toanolo7, Una Que Amo 90, Coda 90. Irma 93. Third race, mile and one-sixteenth, handicap— Libertine lis, Installator 105. cahrlllo 102. Lobengula 102. Judge Denny 96, Grady 90. Doctor G. 83, Doyle 84. Fourth race, mile and a quarter, handicap, hurdle-Oov Budd 145 C»ndorl4o. Hello 134. Malo Diablo 130. Fred Gardner 12S Idaho Chief 127. Mr. Reel 12:.. Fifth race mile, selling—Little Cripple 105. Frank K. 108, Jack Richelieu 10S. Viking 85, Rey Del Tlerra 88. CameliaOS. Joe K. 103, Elmer F. 105, Capt. SkedaneeMo. Morte Fonse 112, Veragua 100, Greyhurst 97, Kam Sin 108. Sixth race, three-fourths of a mile, purse —Blue Bell 105, Sport, McAllister PS, Harry O. 107. Cadenza 105. Fortunate 95, Santa Bella 110. Pelxotto 102. Imp. Sain 105, Adolph Spreckels 110. Arapahoe 105. Pat Murphy 107, Formal 110, Sly 100, Nonchalance 100,

THE GREAT CANAL SAN FRANCISCO. Jan. s—The Merchants' association recently forwarded to California's senators and congressmen at Washington resolutions asking them to lend all their eiTorts to advance tho work of the Nicaragua canal. Replies were received today from Senators Perkins and White and Congressmen Maguire, Loud and McLaehlan. All acknowledged the importance to California of the completion of the great canal and all assured the association that nothing would be left undone to bring it about and thereby establish the advantageous route.

THE ANTI-SPIT FAD. PHOBNIX, Arts., Jan. 6.—The city councll of Phoenix has passed an ordinance making it a misdemeanor to spit on any city sidewalk, and setting a fine not exceeding $10 for each offense.