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Show KSTIiTES OF ! SHIPBUILDERS I MUCH TOO HIGH t i : I Congress May Repeal Au- thorization of Construc- j tion of Battle I ' Cruisers. BIDS ARE $1,000,000 OVER THE LIMIT Assistant Secretary Roosevelt Roose-velt Appeals to Bethlehem r Steel Company; Patri- ! otic Reply Returned. i i . i XEW YORK, Jan. 6. The navy department de-partment faces the possibility of repeal by congress of the authorization of the I construction of four new battle cruisers j unless the expense as estimated by j shipbuilders for construction can in some way be reduced, according to a telegTam from Franklin D. Roosevelt, assistant secretary of the navy, made ! public here today by the Bethlehem Steel company, which received the message. mes-sage. The shipbuilders' bids are $1,-000,000 $1,-000,000 in excess of the $15,500,000 limit fixed by congress on each cruiser, says Mr. Roosevelt's telegram. The Bethlehem company sent a reply, re-ply, it was announced, offering to cut 10 per cent from the cost of all materia mate-ria it might contract to supply toward the building of the cruisers. It was stated that this was done in the "interests "in-terests of patriotism. ' ' The company informed Mr. Roosevelt that it estimated esti-mated that "if other interests meet you in the same spirit" the desired $1,000,000 saving on each cruiser can be effected. Secretary's Telegram. Secretary Roosevelt's telegram, after alluding to the shipbuilders ' bids being beyond the maximum limit fixed by congress, read: "In order to avoid necessity of asking ask-ing congress for increased appropriations, appropria-tions, thus involving delay and even possibility of not securing the increase, ?r of repeal of authorization for construction, con-struction, department is endeavoring to find ways or reducing the cost of construction. con-struction. ' ' J Some of the shipbuilders, the roes-' sage continues, are meeting this situation situa-tion "in a commendable way"'" and are in Washington in consultation, endeavoring endeav-oring to find further means of reducing reduc-ing construction. "Navy appeals, to you to do your share, M the telegram continued, and the Bethlehem company is asked what reduction it will accept over its quotations quota-tions made some weeks ago for material mate-rial ' ' if navy buys the material for four ships and gives vou the contract for all.' Company's Reply. The steel company's reply, signed by E. G. Grace, president, read in part: "We appreciate the position in which the department finds itself on account of the high cost of construction, as is reflected in both labor and materials, as against the appropriation congress has provided for the building of the battle cruisers. "It is our disposition always to do our part, and to meet you in this direct di-rect appeal we will be willing to make a reduction of 10 per cent in the prices already quoted. This to applv alike for one, two, three or four ships. "We estimate if other interests meet you in the same spirit that vou can effect the desired saving. We trust the navy department will recognize the position we are taking in this instance and reflect same in future relations." It was explained today on behalf of the company that it was prepared to carry out its offer of 10 per cent reduction" reduc-tion" regardless of what other companies which supply material might decide to do in tins connection, and regardless also of whether the contracts for the building of the cruisers were awarded to the Bethlehem or its subsidiaries. The cost of material necessary to build a $16.o00,0U0 cruiser is about $10,000,000, "it was asserted, but all of this material would not be supplied by the Bethlehem if it received the contracts. con-tracts. What part the company might furnish fur-nish a spokesman for the company would not disclose, but if the Bethlehem's Bethle-hem's offer of 10 per cent reduction is accepted by the government and other material supply companies meet the navy department's appeal in the same spirit, it was declared, the department could save $4,000,000 of the shipbuilders' shipbuild-ers' total estimated cost of the construction con-struction of all four vessels. It was stated further on behalf of the Bethlehem company that its reduction reduc-tion offer would apply, as well, to material ma-terial which might oe furnished should the cruisers be built at government navy yards. |