Evening Republican, Volume 19, Number 75, Rensselaer, Jasper County, 30 March 1915 — SELLING ALLIES BILLIONS A YEAR IN MUNITIONS [ARTICLE]
SELLING ALLIES BILLIONS A YEAR IN MUNITIONS
Great Stream of Business Flows Into United States as Result of War. PLANTS TAXED TO UTMOST Most of the Contracts for Supplies Run for Two Years or Longer— Goods Bold for Delivery Here —Shipment at Buyer’s Riak. New York. —A common estimate of the war’s length Is three years. In the first six months of the conflict the United States sold about $400,000,000 In war supplies, not taking Into consideration foodstuffs designed for civilian populations. By August 1 our trade will reach $1,000,000,000; and unless something occurs to check this phenomenal business $3,000,000,000 will have poured into the United States before the treaty of peace Is signed. Even if the war ahpuld stop right now our trade In the materials of war would soon reach a billion, for most of the great contracts are written to be fulfilled without regard to the course of the war and run for two years, or even longer. Our gain would be even larger could we supply both sides. As It Is, almost nothing is going to the Teutonic allies. The United States government officials are unable to give anything like correct figures of the trade in war supplies. A large proportion, how large It is impossible to say, goes to Canada first and is shipped from there to England, France, Rub sla or one of their allies.
There is no penalty for mlsbilllng exports. Much gunpowder is going out in cases marked sugar or salt, especially through Pacific ports to Russia by way of Vladivostok. In the most authoritative circles It is estimated that the principal items In the four millions of dollars' worth ordered here in the first six months were: Motor cars, 125,000,000; arms, explosives and the like, 1105,000,000; iron and steel, $65,000,000; uniforms, socks, sweaters, etc., $30,000,000; chemicals and hospital supplies, $6,000,000; soldiers’ shoes, harness and other leather products, $18,000,000; miscellaneous, Including food supplies known to have gone to the armies, $160,000,000. Plants Run Night and Day. It can be said without fear of contradiction that the allies have not contracted for the entire output of the arms and ammunition factories of the United States, while scores of concerns are enlarging their plants and running three shifts a day to fulfill their foreign contracts. . Many of these companies do not know they are turning out goods for a foreign power. They may surmise ft, but they do not care. They dealt only through a broker or agent and with great secrecy. Goods are sold for delivery here, and shipment is at the buyer’s risk. The buyer enforces secrecy, because the goods are contraband. The manufacturers surround their plants .with high fences and troops of armed guards in order not only to co-oper-ate with the buyers in maintaining secrecy, but also to prevent meddling by agentß.of governments hostile to -the buyers. The 75 firearm and ammunition factories in the United States ordinarily employ.. 20,000 persons. Ncfw their forces number 50,000 and are increasing. The enormous demand for high explosives. has forced prices to high levels. Picric acid, used in making explosives, has risen from 25 cents to $2.50 a pound and the entire supply on hand has been bought up. Those who still have guncotton on hand which can be delivered within 80 days are asking 78 cents a pound. The usual price is 20 to 25 cents. In February the French government tried to boy 24,000,000 pounds of guncotton, offering 65 cents. It was unobtainable, so contracts were placed with a number of mills running over two years. More than 10,000 automobile trucks have been shipped to England and France since August 1. but from the way new orders are coming in, this
ning. 1 The French war authorities figure the average life of an auto truck is only seven days. Thousands of Buyers. There are thousands of buying agents for the foreign governments all over the country, but the two largest Mocks of contracts are coming through Charles Schwab of the Bethlehem Steel company and J. Pierpont Morgan, head of the great banking firm. Schwab has made two visits to Europe since the war began_and has obtained contracts amounting to more than $50,000,000. His Bethlehem works are making even 12-inch guns for the allies, hut in addition to what is turned out here he haa sublet orders in a dozen different cities Morgan is now the general purchasing agent of the British government and all orders go through his firm. Every section of the country where manufacturing is a large feature of business Is benefiting from war orders, although these orders in many cases are not large enough to offset the depression in domestic trade. Many orders are from governments which never before bought in the American market and American business men believe they can hold this trade after the wpr Is over. They argue that much of the work now being done here for Great Britain, to take an instance, has previously been done in Germany, and that the bitter feeling after the war will preclude its being done there again. A Philadelphia factory is making swords for the British army. Such a contract had flhver before been received in this country. In the past British swords have been made in Germany. In* the Pittsburgh district, which includes Bethlehem, many Germans who formerly worked for the Krupps are employed. They are now making war material for the allies, although, of course, they do not know this definitely. The men in the factory are .not informed for whom a particular six-inch shrapnel shell is being made.
Some odd Items are. reported. The French government has paid New England manufacturers $260,000 for snowshoes. One concern In Philadelphia is turning out a folding saw with wooden handles for cutting wire entanglements. When the war started the armies used steel pliers for this work, with the result that many men were shocked to death by high voltage electricity. Factories turned to New Uses. All sorts of factories have been pressed into commission to make things useful in war. A company in Bridgeport, Conn., which usually makes cemetery monuments of bronze, is now turning out forgings fbr an auto truck concern which has a large order from the allied countries. Bridgeport, by the way, Is enjoying huge prosperity because most of Its industrial concerns are working on war orders. . All through Massachusetts and Connecticut war orders are helping to overcome the depression of the first few months of the war. The Fore River Shipbuilding company is very busy. It is generally reported it is making ten submarines for the British navy, these to be delivered at the end of the war. In addition, It Is making about 25 other submarines. Demand for many particular articles has been so great that the allied governments have signed contracts at prices most attractive for the manufacturers. In addition, it is pretty well established that middlemen, brokers and agents are gathering in millions in commissions, some of which are exhorbitant. , It 1b said by a Chicago merchant, for Instance, that there is a well-or-ganized band of extortionists, with agents in all the big cities on both sides of the Atlantic and headquarters In New York, which Is exacting a toll of from 15 to 20 per cent on practically every shipment of war supplies that leaves the country. In general the agents of each government maintain that their nation is buying right, while stating a belief that other nations are being fleeced, i A well-known Russian exporter of New York city says the Russian government is suffering the most heavily of all. He has sent over a report for wide publication in Russia in which he says that already $20,000,000 has been lost through the exploitation of American commissioners and brokers.
