William Denman to Woodrow Wilson
Title
William Denman to Woodrow Wilson
Creator
William Denman
Identifier
WWP21596
Date
1917 July 5
Source
Library of Congress, Woodrow Wilson Papers, 1786-1957
Language
English
Text
My dear Mr. President
I have today learned from Mr. Royden, the British representative sent here by Mr. Balfour, that, with steel at $60 a ton for plates, merchant tonnage was being generally constructed in Great Britain for under $80. a dead weight ton. Our analysis of the figures is not yet complete, but we are certain, from the distance we have gone, that our friends in the steel group have, in the fabricated ship contracts proposed to be entered into, a profit which, in addition to an ordinary profit, would equal a charge for steel at around $100. a ton.
We believe that a further analysis of the figures will show that, under the fabricated system, which, in an order of $350,000,000, would be developed to its highest efficiency, it is a far cheaper system of constructing vessels than that pursued in the small yard in California where the eight vessels are to be constructed at $137. a ton, assuming steel at $50. a ton.
I yesterday asked General Goethals to send me a statement of the prices that had been paid under the contracts for 2,153,000 tons of fabricated ships, and he advised me in a written memorandum as follows:“Price not yet settled.”It seems to me that a further discussion of this matter between us would be advisable, and that, before any decision is made, I obtain from the General his actual fixed prices. They must be certainly sufficiently fixed in his mind after having advised you, as he did in his letter, that is to say, 2,153,000 tons, and estimated an approximate cost of $350,000,000, or $162.50 a ton. The amount at stake in the contracts is a difference of $50,000,000. With this deducted, there would, I feel quite confident on further analysis, be a liberal profit to the firms undertaking the contracts.
The personnel of these firms we have also carefully analyzed, and they are made up of the masters in the steel producing group.
Very faithfully yours,
William Denman
The President,
The White House.WD.
JPJ
We have been carefully analyzing General Goethals' statement that he is about to enter into contracts for
Several weeks ago I procured for the General a contract for the construction of eight vessels in a yard then unbuilt, at a rate, computing steel at the same price - $50. a ton - of about $137. per dead weight ton. These people estimated that there was a liberal profit at this figure. The fabricated price is $162.50.I have today learned from Mr. Royden, the British representative sent here by Mr. Balfour, that, with steel at $60 a ton for plates, merchant tonnage was being generally constructed in Great Britain for under $80. a dead weight ton. Our analysis of the figures is not yet complete, but we are certain, from the distance we have gone, that our friends in the steel group have, in the fabricated ship contracts proposed to be entered into, a profit which, in addition to an ordinary profit, would equal a charge for steel at around $100. a ton.
We believe that a further analysis of the figures will show that, under the fabricated system, which, in an order of $350,000,000, would be developed to its highest efficiency, it is a far cheaper system of constructing vessels than that pursued in the small yard in California where the eight vessels are to be constructed at $137. a ton, assuming steel at $50. a ton.
I yesterday asked General Goethals to send me a statement of the prices that had been paid under the contracts for 2,153,000 tons of fabricated ships, and he advised me in a written memorandum as follows:“Price not yet settled.”It seems to me that a further discussion of this matter between us would be advisable, and that, before any decision is made, I obtain from the General his actual fixed prices. They must be certainly sufficiently fixed in his mind after having advised you, as he did in his letter, that is to say, 2,153,000 tons, and estimated an approximate cost of $350,000,000, or $162.50 a ton. The amount at stake in the contracts is a difference of $50,000,000. With this deducted, there would, I feel quite confident on further analysis, be a liberal profit to the firms undertaking the contracts.
The personnel of these firms we have also carefully analyzed, and they are made up of the masters in the steel producing group.
Very faithfully yours,
William Denman
The President,
The White House.WD.
JPJ
Original Format
Letter
To
Wilson, Woodrow, 1856-1924
Files
Collection
Citation
William Denman, “William Denman to Woodrow Wilson,” 1917 July 5, WWP21596, World War I Letters, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.