The New York Times/1916/11/22/Rifle Contracts Given Up

RIFLE CONTRACTS GIVEN UP.

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Action by Remington and Midvale Companies Reported.

Special to The New York Times.

PHILADELPHIA, Penn., Nov. 21.—It was reported here today that the Midvale Steel and Ordnance Company virtually had relinquished its $60,000,000 army rifle contract, and that under an arrangement somewhat similar to that by which the British and Russian commissions took over the Russian shell contract from the Eddystone Ammunition Company, the British commission now has taken up the Remington Arms Company contract, which covered 2,000,000 Enfield rifles.

In both these contracts the Baldwin Locomotive Works had an interest in the way of royalties, and to get the huge buildings constructed under improvement lease arrangements on its Eddystone property. It is said that the British commission reimburses the Midvale to the full extent of cash, up to perhaps $10,000,000, which has gone into the Remington Arms operation.

There is another part of the agreement, it is understood, by which the Midvale is to get a specified profit on all rifles above 1,000,000 which may be manufactured at the Remington plant during the remainder of the war or such time as the plant shall be held under control of the British commission.