Saturday, April 27, 2013

Russia's New Fleet Will Cost A Billion.

New York Times 100 years ago today, April 27, 1913:
The Money Is Ready and the Orders Are In, but Her Yards Can't Fill Them.
EMPIRE'S LAWS IN THE WAY
They Provide That Every Bit of Metal Used Must Be Made in Russia, V. C. Lassen Says.
    The Russian Government finds itself in a curious dilemma in its effort to recreate the navy that was shot to pieces by the Japs in the late unpleasantness, according to Victor C. Lassen of East Weymouth, Mass., inventor of vanadium bronze, and other vanadium alloys that are used largely in submarine boats and other ship work.
    The naval plans of the Russian Government call for an expenditure of a billion dollars — two milliards of rubles to be exact—in the next two years, he said, and contracts for four battleships, four cruisers, twenty-eight torpedo boats, eighteen submarines, and six transports, totaling 500,000,000 rubles, already have been let.
    But while the spirit of the Government is willing, the shipyards and foundries of the country are weak, and there is apparently not the slightest chance of carrying out this ambitious programme in the specified time under present conditions, because under the laws of Russia not a single bit of metal can be imported into the country for Government use, and the native facilities for supplying the necessary materials is wholly inadequate.
    "I learned in St. Petersburg that the Russian Government has appropriated 500,000,000 rubles for new ships this year and 1,500,000,000 rubles for 1914 — about a billion dollars all together, for one ruble is nearly 50 cents, said Mr. Lassen, who recently returned from St. Petersburg, where he went for the purpose of looking the ground over with a view to establishing a large foundry for the manufacture of the vanadium metals used in shipbuilding. Mr. Lassen had conferences with the Minister of Marine and other officials of the department, and his information is authoritative.Germany Gathering Gold.
    "Contracts for naval construction at the various yards and works, said he, have already been let, as follows:

    Nevsky— Six transports, two torpedo boats, three submarines; total cost, 20,000,000 rubles.
    Poutiloff— Two cruisers, eight torpedo boats; cost, 100,000,000 rubles.
    Noblessner— Eight submarines; cost, 32,000,000 rubles.
    Baltic— Two battleships, seven submarines;, cost, 100,000,000 rubles.
    Admiralty— Two battleships; cost, 80,000,000 rubles.
    Franco-Russian— Turbines; cost, 70,000,000 rubles.
    Metallic— Eight torpedo boats; cost, 16,000,000 rubles.
    Becker— Five torpedo boats; cost, 12,000,000 rubles.
    Ziese— Five torpedo boats, two cruisers; cost, 60,000,000 rubles.

    "This makes a total of four battleships, four cruisers, twenty-eight torpedo boats, eighteen submarines, and six transports. The six submarines to be built at the Nevsky Yards are of the Holland type; the seven at the Baltic Yards of the Boubnoff type, and the eight at Noblessner Works of the improved Boubnoff type.
    "But while this is the programme, as laid down, the carrying out of it is going to be quite a different matter, for the Russian laws do not allow any of the necessary material to be imported. Every plate, every screw, every rivet, every casting—in fact, every particle, of metal must be made in Russia, and they have available only two small foundries capable of turning out bronze castings, for example. And those two foundries can only make castings weighing up to 1,500 pounds.
    "As their bronze foundries were physically unable to make the torpedo tubes of bronze, the Russian Minister of Marine ordered that the submarines and torpedo boats be equipped with steel tubes. When I pointed out to him that the steel would quickly corrode and render them hors du combat, he said, 'We can line them with tin.' But when I pointed out that the tin would quickly flake off, he took the matter under advisement and finally decided that all torpedo tubes must be bronze castings, and that no more steel tubes would be allowed.
    "I think that Russia is just at the beginning of a great era, because the country has piles of money and the people are waking up. I compare the Russia of to-day with America seventy-five years ago. It has been at a standstill, but I found evidences of a great awakening on all sides.
    "There is lots of money to be made there, and the ban has been removed on foreigners desiring to do business there. The Government is only too glad to extend a helping hand to any new enterprises, and the banks, too, are willing to loan money to legitimate foreign enterprises. Russia is a fine field for American capital, and Americans are very highly thought of.
    "People in this country have a very wrong idea about Russia. They think that Russia is honeycombed with graft; that the foreign business man must pay interminable 'commissions,' and other tips to the Government officials. Nothing of the kind! There is less graft in Russia than right here in New York. There is no attempt to hold up the American proposing to engage in legitimate business. On the contrary, the officials are glad to do everything in their power to help you out. They welcome new enterprises with open arms. The German and Russian don't hitch very well, and an American can get concessions every time where the German cannot. Americans are held in very high regard over there."
    Mr. Lassen added that on all Government, contracts the Government paid 50 per cent. of the contract price in advance. In his investigations preliminary to the establishing of a large bronze foundry to take care of the Government's requirements for the new navy, he found that skilled molders received from 2 to 2 1/2 rubles a day — about equivalent to $1 and $1.25, while unskilled labor was rewarded with a maximum dally wage of 1 ruble, or 50 cents.
    "But, then, the cost of living in St. Petersburg is considerably less than it is here," he added.

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