Ries
Diamond
- Joined
- Mar 15, 2004
- Location
- Edison Washington USA
good history of the development of naval armor up thru 1937 here- no mention of bad guvmint intervention, though.
Development of Warship Armour
Okay- here is what he is talking about- it actually did happen, that, for about 3 years, the government did build a mill, and it did fail. So he is right- in 1913, Woodrow Wilson and his cronies did, indeed bungle a steel mill.
The Armor-plate Scandal | AMERICAN HERITAGE
[FONT="]But when the Wilson administration came to office in 1913, it was perturbed by the fact that the bids for contracts by the handful of companies that could produce armor plate were often nearly identical. The reason was simple enough. The Navy was afraid that if it awarded an entire contract to the lowest bidder, less efficient companies might drop out of the armor-plate business and the country would not have an adequate supply in wartime. So it made a practice of giving all the companies an equal share of any large contract, provided they met the lowest price. With no incentive to bid low, no company did so.[/FONT]
[FONT="]Josephus Daniels, Wilson’s Secretary of the Navy, thought the solution was a government armor plant. Congress appropriated the money after a Navy report estimated that a plant with a yearly ten-thousand-ton capacity could be built for $8,446,000 and could produce armor for only $314 a ton, while the steel manufacturers were then being paid $454 a ton.[/FONT]
[FONT="]The steel companies, hardly happy about the idea of the government, already a monopsony for armor plate, becoming a competitor as well, fought the project. But they needn’t have worried. When the plant was finally finished, three years after World War I ended, it was millions over budget and could not produce armor for less than nearly double what the steel companies charged. The plant was shut down after producing one batch of armor plates and never reopened.[/FONT]
[FONT="]For almost a century leftist historians have been regularly dredging up the “armor-plate scandal” as an example of capitalist greed at its worst. What it really is, of course, is one more example of government incompetence both as a customer and as a manufacturer.[/FONT]
Development of Warship Armour
Okay- here is what he is talking about- it actually did happen, that, for about 3 years, the government did build a mill, and it did fail. So he is right- in 1913, Woodrow Wilson and his cronies did, indeed bungle a steel mill.
The Armor-plate Scandal | AMERICAN HERITAGE
[FONT="]But when the Wilson administration came to office in 1913, it was perturbed by the fact that the bids for contracts by the handful of companies that could produce armor plate were often nearly identical. The reason was simple enough. The Navy was afraid that if it awarded an entire contract to the lowest bidder, less efficient companies might drop out of the armor-plate business and the country would not have an adequate supply in wartime. So it made a practice of giving all the companies an equal share of any large contract, provided they met the lowest price. With no incentive to bid low, no company did so.[/FONT]
[FONT="]Josephus Daniels, Wilson’s Secretary of the Navy, thought the solution was a government armor plant. Congress appropriated the money after a Navy report estimated that a plant with a yearly ten-thousand-ton capacity could be built for $8,446,000 and could produce armor for only $314 a ton, while the steel manufacturers were then being paid $454 a ton.[/FONT]
[FONT="]The steel companies, hardly happy about the idea of the government, already a monopsony for armor plate, becoming a competitor as well, fought the project. But they needn’t have worried. When the plant was finally finished, three years after World War I ended, it was millions over budget and could not produce armor for less than nearly double what the steel companies charged. The plant was shut down after producing one batch of armor plates and never reopened.[/FONT]
[FONT="]For almost a century leftist historians have been regularly dredging up the “armor-plate scandal” as an example of capitalist greed at its worst. What it really is, of course, is one more example of government incompetence both as a customer and as a manufacturer.[/FONT]