THE ARMOR PLATE HOLD UP OF UNCLE SAM

Cortland Evening Standard, Saturday, April 17, 1897.

PAGE TWO—EDITORIALS.

The Armor Plate Hold-up of Uncle Sam.

   The federal government and the manufacturers of armor for war ships are now deadlocked. The government has heretofore paid $563 per ton for reforged nickel Harvey armor and furnished in addition the nickel, which costs about $20 a ton—making a total cost to the government of $583 per ton. Two companies have been making this armor under contract with the government—the Bethlehem (Pa.) Iron company and the Carnegie company, which have built special plants at great cost for this particular service. It was the policy of the government to secure the production of the armor at home, and hence bids for the service were limited to two or three home companies and the element of competition was thus practically eliminated.

   It began to appear that the government was paying an exorbitant price for its armor, and accordingly the secretary of the navy was requested by congress a year ago to inquire into the cost of making the armor. This investigation was accordingly undertaken by Secretary Herbert, but at the outset he was met by a flat refusal from the Carnegie and Bethlehem companies to reveal what they termed their business secrets. Accordingly the secretary proceeded as best he might. Government inspectors stationed at the works were asked to hand in estimates of cost; the inquiry was extended to foreign countries, and other sources of information were examined.

   It appeared in the first place that an understanding evidently existed between the American and European makers of armor respecting the maintenance of uniform prices, and hence the European end of the inquiry shed little light on the problem. It was found in the next place that the government had already within four years paid to the American companies a sum of money sufficient to cover the costs of their plants and pay a profit on the investment at that. It next appeared from the individual estimates of cost of production furnished by several government inspectors on the ground—estimates that were singularly uniform—that the armor was being produced at a cost for labor and material and losses in manufacture of about $198 a ton. This cost includes all expenses save allowances for maintenance of plant. Making the liberal allowance of 10 per cent on the value of the plant as a maintenance charge, Secretary Herbert reached the conclusion that armor for which the government was paying $563 per ton could be profitably produced by the companies for $256 per ton, the government furnishing the nickel.

   He was partially confirmed in this estimate by the fact that the Bethlehem company had furnished similar armor to the Russian government at $249 per ton and provided the nickel itself, and also transportation to Russia. As the nickel cost $20 and transportation and insurance charges could not be less than $4 a ton, the Bethlehem company was making armor for Russia at a charge of $225 a ton when it was getting $563 from the United States government. But the Bethlehem company insists that it was doing the work for Russia at a loss in order to secure a European market.

   Well, the final recommendation of the secretary to congress was that the government ought to deal most liberally with the American contractors. It was highly desirable that the armor plants should be maintained and it was not desirable that the government should go into the business itself. Hence if congress was to fix a maximum price to be paid for armor the figure should not be made unduly low. He concluded that, all things considered, a maximum price of $400 a ton would not be too high, the companies hereafter to furnish the nickel. This would be a reduction of $183 from the prices at present paid.

   Congress, however, at the last session fixed the maximum price at $300 a ton, and under this decree bids for 8,000 tons of armor now needed by the government were lately invited. No bids were received. The Carnegie and Bethlehem companies were silent. The Illinois steel company made the only response and this was to assist the government under certain conditions to erect a plant of its own at South Chicago. But the secretary of the navy has no authority to proceed to build a government plant. Hence a deadlock. The government needs the armor. Its war ships now being built or authorized must soon be deserted half-finished upon the stays unless the armor is duly provided. The only two armor plants in the country are under private control and cannot be made to budge. Congress must retreat from its $300 maximum price or authorize the purchase or construction of a public plant.

   One thing alone is clear. The attitude of the Carnegie and Bethlehem companies has been reprehensible. If $300 a ton is a profitless or losing price they had abundant opportunity to prove it. They need not have given away their business secrets save as respects alone the cost of production. They could have shown their books and vouchers, and the demonstration would have been conclusive. They refused to exhibit anything and this was in itself confession of exorbitant charges. Their present attitude suggests an attempt to sandbag the government. Probably congress named too low a figure, but under the circumstances and in view of the attitude of the two companies the action of congress was natural. It is not to be the unquestioned privilege of any concern, after government has thrown to it a practical monopoly in a great quasi-public work, to extort from the public treasury what it pleases.

   The question now confronting the government is whether the Carnegie and Bethlehem companies shall be permitted once more to name their own prices, or whether the government shall go to manufacturing armor on its own account. The government already manufactures army rifles and most of the army and navy and coast defense armament. It would be no great step to proceed to the manufacture of its armor plate. If we are to extend or even maintain the navy there will be a constant demand for armor; and if the private plants in question are forever to sit in dubious secrecy over their operations and probable extortions, the sooner the government goes to making its own armor the less trouble there will be evidently.

   Congress should consequently repeal its maximum price limit of $300, and then authorize the secretary of the navy to invite new bids—coupling with that authorization however, the authority and means to proceed to buy or build a government plant if in the judgment of the secretary the bids are unreasonable. Light enough has now been shed on the cost of armor production to enable the secretary to judge whether the bids are reasonable or not. This course will remove from the Pennsylvania companies a possibly unfair limitation upon price and at the same time arm the secretary with power to prevent extortion.

   ◘ In a letter printed in Thursday's New York World, Thomas G. Alvord, Jr., its correspondent in Cuba, says that fully 200,000 pacificos are now starving in the fortified towns, Weyler, in pursuance of his policy of extermination, having driven under pain of death, all persons living on farms into the towns. They have no money to pay rent or buy food, so they have built bark houses in alleys and low spots, where they are dying of disease, or starving to death at the rate of 100 a day.

   There is plenty of food in the country, for the soil yields quickly an over abundance, but the pacificos are not allowed to go to their old homes and bring back something to eat. When they ask the Spaniards for food they are told there is not enough for the troops. Among those who have been forced into the towns are hundreds of Americans, for nearly all those of that nationality on the islands were engaged in agricultural pursuits. Mr. Alvord says that many specific cases of the starvation and ruin of American, citizens were reported to Secretary Olney by United States consuls, but he suppressed the reports.

New French Ocean Cable.

   WASHINGTON, April 17. — The French embassy here is actively assisting the French Telegraphic Cable company in efforts it is making to lay a new cable from Brest, France, to Cape Cod, Mass., which shall take the place of the old cable laid 18 years ago.

Trout Season Opens.

   KINGSTON, N, Y., April 17.—Large numbers of fishermen went on the Ulster and Delaware train into the Catskills Friday fully equipped for catching trout. Many journeyed up into the mountains and were whipping the gamey streams at sunrise, but owing to the high water and cold weather indifferent success is reported. The Beaverkill, Drybrook and the Esopus and its tributaries were the favorite streams.

Large Catch of Trout.

   MIDDLETOWN, N. Y., April 17.—Andrew H. Jackson, a millionaire real estate agent of New York city, fished in Sand Bar creek near Mountaindale in company with Jacob Gunther, one of the most experienced fisherman in this city, and secured 142 trout, weighing from a quarter of a pound to one pound and a half each. This is considered one of the best catches made in years.

Catalogue Just Out.

   The new catalogue of Syracuse university is just out and it is a little volume of 208 pages. Upon its outside cover is a facsimile of a tablet taken from ancient Syracuse and its time is supposed to be 388 B. C. The catalogue shows the names of 125 people among its corps of instructors and 1,135 student s in the university. The catalogue contains a large amount of interesting descriptive matter aside from that usually found in such a publication, and also contains fine half tone cuts of the buildings.

THE CORTLAND DAIRY CO.

To Start a Delivery Wagon for Supplying Cortland Customers.

   The Cortland Dairy company are now receiving about 6,000 pounds of milk a day at their new milk depot near the junction of the Lehigh Valley and D., L. & W. railroads. On Monday of next week their new delivery wagon will be put upon the streets carrying a full supply of fresh creamery butter, cheese, buttermilk, skim-milk, sweet cream and everything pertaining to this, line of household necessities. The wagon will be in charge of Mr. Ambrose Delaney who formerly conducted a similar business and is well known all about town. Mr. Delaney has recently returned to Cortland to live and will devote his entire time to looking after the interests of the new delivery wagon.

Dressmaking.

   Haying rented the rooms in the Van Bergen block recently occupied by Miss Dora Miller, Miss L. P. Fertig desires to call the attention of all those interested in dressmaking that she is prepared to do first class work and will be pleased to receive a call from those wishing any work in her line. She employs none but competent assistants and guarantees her work to give perfect satisfaction. Her rooms are situated in the rear of the second floor of the Van Bergen block, 100 Main-st.

BREVITIES.

   —Edward Stilson's residence has been connected with the telephone exchange.

  —Grant Weeks was given a suspended sentence of 59 days by Police Justice Mellon this morning for public intoxication.

   —A return game of handball will be played in the Y. M. C. A. rooms Monday night between the C. A. A. and Y. M. C. A. teams.

   —New advertisements to-day are—Bacon, Chappell & Co., Black Dress Fabrics, page 8; F. E. Brogden, Ice Cream Soda, page 7.

   —On account of Miss C. A. Covil's ill health her pupils' recital which was to have been given next Wednesday evening will be postponed.

   —Contractor Frank Groat is to-day placing a partition across the rear of the drug store of F. E. Brogden, separating the main store from the prescription department.

   —Mr. J. G. Bussing has purchased from Mrs. C. A. Lansing the house on Port Watson-st., formerly belonging to the Benjamin Sinton estate, and has taken possession.

   —Last evening Messrs. R. Paul Higgins and C. Ray Lord with the Misses Anna L. Clarkson and Bertha E. Weeks were entertained by Mr. and Mrs. J. G. Marshall at a delightfully served 5 o'clock tea.

   —China has sent to Cornell university to secure a graduate of the agricultural department to conduct and manage a model experimental farm in that country. The salary offered is $3,000 per year.

   —A meeting will be held in Empire hall at 3 o'clock Sunday afternoon, April 18, to make final arrangements for instituting a Red Men's tribe. Those wishing to join the order are cordially invited to attend.

   —All friends of the Cortland hospital who may care to do so are invited to attend the Easter services there to-morrow afternoon at 4 o'clock. An address will be made by Rev. John T. Stone, and a quartet will furnish music.

   —Bear in mind the special Easter service for men at the Y. M. C. A. rooms Sunday afternoon at 4 o'clock. Address by Prof. J. E. Banta. Special instrumental and vocal music. Souvenir offering of the Woman's Auxiliary to every man present.

HOMER.

Gleanings of News From Our Twin Village.

   HOMER, April 17.—A very large number were present at the Easter social given in the parlors of the Baptist church. The managers of the affair wore large bonnets of a unique design which together with other Easter novelties were offered for sale. At about 6:30 the congregation was called to order to listen to Scripture reading by Rev. J. A. Hungate and a prayer by Rev. J. B. French of Cortland, after which supper was served. The supper was an unusually good one and one which was greatly enjoyed by every one present. At the beginning of the supper hour a prayer was offered by Rev. F. A. S. Storer.

   On Thursday evening of next week the members of the vested choir of the Calvary Episcopal church are to give a musical entertainment. It is thought that it will be given in the Keator opera house, although it has not been definitely decided.

   Mr. George McAuliff, who has been confined to his home on James-st. by illness, is again able to be about.

   The condition of Mr. Charles Scudder, who sustained an injury which resulted in an internal hemorrhage while employed in Brockway's Carriage works, has greatly improved.

   The trout season opened yesterday in a way that would satisfy the most devoted disciple of Izaak Walton. The local crack fly throwers were out in force and not a few returned with well filled baskets, in addition to the usual well stretched yarns about the monsters that were lost off the hook. Notable among the successful ones were Charles Northrup, a veteran who is said to "bully terror'' with a rod, who captured twenty-five with not a mean specimen among them, and Will Davis who brought home six, averaging nearly a pound each. These latter were splendid beauties in reality and their fortunate captor after disposing of his finny treasures for a good round sum was quite the lion of the hour.

   Mr. Charles Barber of New York City is the guest of his sister, Mrs. E. B. Hinton on Clinton-st.

   There will be special Easter services at the Baptist church both morning and evening, Sunday, April 18. The subject of the morning sermon will be the "Significance of the Resurrection" and that of the evening sermon "Life Beyond Life."