One of many curious facts which it is difficult to account for is the apathy which often takes hold of a Government when a plain businesslike proposition is put before them. My long experience in dealing with Colonial Governments had taught me that the surest way of achieving one’s object was to take into one’s confidence the leaders of the Opposition for the time being, convince them of the soundness and merits of the proposal, and induce them to adopt the scheme as a plank of their own policy. Those in power generally resented the Opposition’s interference, and at times just out of “sheer cussedness,” refused to move in the matter at issue, forgetting that more than probably in a few months they themselves would be sitting disconsolate and minus their Ministerial salaries on the Opposition benches, while their late opponents scored heavily by quickly giving effect to the proposals they themselves had, through that “sheer cussedness,” failed to adopt in the interests of the country. Considering how short-lived Cabinets were in the early years of Federation, there was little risk, if any, in carrying out the above plan.
As a very heavy expenditure would have to be incurred in establishing an arsenal, small arms and explosives factory, it was incumbent on me to prove to the Government that such an expenditure was not only justifiable from a national insurance point of view but that it could be made actually a money-saving proposition, apart from the fact that, by utilizing Australian products and labour, as well as local inventive talent, all the money spent would remain in the country instead of passing on into the hands of strangers.
In order to ascertain the probable expenditure of a plant capable of turning out from thirty to forty thousand rifles per annum, I personally arranged for confidential agents to make thorough inquiries in England, America and Germany, and while awaiting their report to me I gave my attention to the selection of a suitable site.
The coal mining town of Lithgow, situated some eighty miles west of Sydney, possessed so many advantages that my choice was soon made. Leaving Sydney, the plain extends as far as Penrith, which lies at the foot of a high range happily named the Blue Mountains. The train which serves the western districts climbs its way to Katoomba and Mount Victoria, the highest point, through wonderfully picturesque scenery, and then descends rapidly to low levels, emerging at the town of Lithgow, a branch line connecting it with the southern railways system via Blayney and Young. The coal deposits at Lithgow are extensive; large fields of iron ore are available at no great distance further west. Iron and steel works on a big scale were in process of being established. Every consideration pointed to the suitability of the site, and, as a matter of fact, no voice was raised against it.
Later on I received the reports of my agents. Those from Germany were unsatisfactory. A close examination of the English and American estimates of cost showed that the English prices were exorbitant, and, in addition, the time-limit I had set for the delivery of and setting up the machinery at Lithgow, namely, eighteen months, could not be guaranteed by the English firms.
Armed now with full information, I submitted the proposal to the Government, the Minister for Defence at the time being my old acquaintance, Mr. Playford, from South Australia.
The Press and the leaders of the Opposition supported the proposal, and the Government went so far as to approve of inquiries being instituted by the Defence Department as to the probable cost and other points of importance. Mr. Playford appointed one of our officers then in England to co-operate with the High Commissioner for the purpose. I had not deemed it necessary to inform Mr. Playford of my private inquiries, simply pointing out to him that in my opinion the factory could be established at a satisfactory figure.
Probably through lack of sufficient experience, the result of the inquiries by the officer selected was a report as to cost which practically damned the proposition. Mr. Playford was annoyed that I had so insistently expressed my opinion that the cost would not be prohibitory, and, as he put it in his curt way, he told me I had practically made a fool of him. I did not allow myself to be put out by his rudeness, as General Owen had done, but smiled and asked him if the Government had decided to turn the proposal down definitely. If so I would be obliged if he could let me have an official minute to that effect, as I had another course to suggest for his consideration. On receipt of his minute I requested a further interview with him. My new proposal was that I was prepared to give up my appointment and establish the factory myself, provided the Government agreed to take 20,000 rifles a year for seven years at the price which we were then paying the War Office, and that at the end of the seven years the Government could take the concern over at a valuation if they so desired. This offer I put in writing and I let it be widely known that I had made it.
Mr. Playford was once more annoyed. He could not understand how it could pay me to throw up my career to undertake a job which his advisers had reported upon so adversely. If he had been let down by them, my offer accepted, and I scored a success, what opinion would the public form of him? In order to avoid falling between two stools he decided to recommend to the Government to call for tenders throughout the world. I had impressed upon him that this was essential in order to test the bona fides of the tenderers. Tenders were called for. I had gained my point, for I knew that if the confidential reports of my agents were fairly correct, the amount of the American tenders would be close on 50 per cent. lower than any others, as no European country, bar England and Germany, was in a position to undertake the order. I accordingly then informed Mr. Playford of my views on the matter and patiently waited for the day when the tenders were due. I shall not forget Mr. Playford’s chagrin when he found that my forecast had been verified to the letter. If I remember correctly the American lowest tender was some £97,000, the lowest English one some £140,000. As the tenderers were a well-known firm of high standing in the United States (contractors to their Government) their offer was accepted and the factory was established at Lithgow.
I had been successful all round, and scored at last off Playford.