May 25, 2006
$300 hammers c. 1906

The May 25, 1906 NYT is full of interesting stories. The headline "Battleship Building Race: Private Firm Beats Government Both in Time and Cost" caught my eye. Evidently, there was an "experiment" in which two battleships were to be constructed at the same time, one by the Newport News Shipbuilding Company and the other by the government at the Brooklyn Navy Yard.

The keel of the Louisiana was laid on Feb. 7, 1903, at Newport News, and the keel of the Connecticut, which was to be built in competition, was laid down at the Brooklyn Navy Yard March 7 of the same year. The Louisiana was launched Aug. 27, 1904, and the Connecticut followed her into the water a month later, Sept. 29. So far the race had been close, but soon the private workmen forged ahead, and the result was that the Louisiana was delivered ready for service probably some months in advance of the Connecticut.
The article implicitly assumes the quality of work and the characteristics of the two ships are basically identical. Moreover, it is not indicated whether the amount of man-hours spent on each ship was equal.

The last sentence is a doozie:

The Louisiana cost $3,992,000, while the Connecticut has already cost all of the total appropriation of $4,212,000, and the department has asked Congress for $380,000 more.

Posted by Craig Depken at 12:10 PM in Economics  ·  TrackBack (0)

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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