1908-02-08 SCHWAB MAY BUILD RUSSIAN WARSHIPS

New York Times, 8 February 1908, p. 11: SCHWAB MAY BUILD RUSSIAN WARSHIPS. Sub-heading: Head of Bethlehem Steel Co. Sails To-day, Presumably to Confer with Government. Sub-heading 2: SILENT ABOUT HIS PLANS. Sub-heading 3: Company’s Plant Has Been Enlarged Recently to Permit a Greater Output of Armor Plate. Charles M. Schwab, President of the Bethlehem Steel Corporation, and Archibald Johnston, Vice President of the company, sail for Europe to-day on the Lusitania. The object of their trip, it is understood, is to make arrangements with the Russian Government for the construction of a number of battleships.

Mr. Schwab admitted last night that he was going to Russia, but said he could not discuss the object of his visit. He said he would probably return to this country in a few weeks. He admitted that the inference would be drawn that he was going to deal with the Russian Government about armor plate, but he said he could not discuss the matter.

The Bethlehem Steel Corporation has on several occasions been mentioned in connection with the Russian Government’s plans for the rebuilding of its navy. Mr. Schwab made a trip to Russia last year, presumably in connection with these same plans.

The Bethlehem Steel Corporation, besides controlling the Bethlehem Steel Company, one of the three manufacturers of armor plate in this country, succeeded to the business of the United States Shipbuilding Company, which controlled the Union Iron Works at San Francisco, builders of the battleship Oregon, and also a number of shipbuilding plants on the Atlantic coast.

The Bethlehem Steel Corporation for a number of years was one of two concerns which bid for the construction of armor plate for the ships of the American Navy. The Government was largely dependent upon this company and the Carnegie Steel Company, but for the last large contracts the Midvale Steel Company also entered a bid and got part of the award. Some time before the Bethlehem Corporation took steps to enlarge its plant. This was completed recently. The making of a contract with the Russian Government for a large amount of armor plate would be regarded as particularly opportune at this time for the Bethlehem Steel Corporation, owing to the falling off in business in this country.