January 1st of this year.

The Secretary did make the inquiries, and found that the actual cost of
making a ton of armor-plate was $197.78.

After an elaborate calculation of profit and loss, and the cost of the
machinery used in making the armor, he decided that the armor could be
made for $250 a ton. He suggested that the Government ought then to
allow the companies a liberal sum per ton for profit on their
enterprise, and suggested that a fair price to pay would be $400 per
ton.

Had Congress accepted this suggestion there would have been an actual
saving of $180 a ton over the price made on the original contracts.

Congress was not, however, satisfied with this. If the Company could
make the iron and come out clear at $250 a ton, it was thought that a
profit of $150 a ton was too much to allow, and therefore Congress voted
that the Government price for armor-plate in future should be $300 per
ton.

They offered at this price to make a contract for twenty new
battleships, which would keep the armor works busy for the next ten
years.

The Carnegie and Bethlehem companies were indignant at this offer, and
refused it absolutely.

They insisted that they could not begin to supply armor for less than
$442 a ton, and that then they would be making little profit on their