By the time of the shutdown, the Army felt there was no longer the need for two armories producing the M1903. The relatively small Regular Army and National Guard had been fully equipped with the M1903 and there was no sign of a war in the future. It was felt that Springfield Armory to handle all future needs.
IIRC, there was some considerable recrimination about this decision when the U.S. entered WWI and found itself critically short of rifles.
"We make men without chests and expect from them virtue and enterprise. We laugh at honor and are shocked to find traitors in our midst."