Evening journal., 1901-05-24
WHY THEY OPPOSE
NTNR-HOUR SYSTEM
American Yards Cannot Al
ford to Increase Expenses
President Henry G. Morse, Of the
New York ShipbuiIding COMPANY
States His Views

President Henry G. Morse, formerly
president OF the Harlan and Honings-
worth Company. now at the head OF the
New York Shipbuilding Company OF
Camden. n. j.. from whose employ NUM-
Der OF men have withdrawn in connections
with the nine-hour movement, was indis-
posed to be quoted when a reporter re-
quested information from him yesterday,
but consented to the publication Of the IN
formation he had conveyed In reply to
various questions, when It was urged that
up to this time little or nothing has been
said from the employers standpoint Di-
vested Of the various interrogatories that
ELECTED them, the views expressed by Mr..
Morse may be stated as follows:
A COMPARISON OF COST.
During last Summer and Fan we were
In competition with foreign shipbuilders, |
and ascertained that our bids averaged
about 20 per cent higher than the for
eign bids. OF course, at the present
time the very high price OF steel makes
the difference in the cost of ships even
greater than during last Summer, at
which time conditions were nearly nor
NAL.
For the sake OF comparison OF cost, itI
may be assumed that the American and
foreign shipbuilders are side by side in
location, as the cost of delivery is paid by
carrying a cargo. The American ship
builder may at times buy his steel as
cheaply as the foreigner, but the great
portion OF the time he is paying more.
The steel manufacturer In this country
wants abnormally high prices when there
/ 80 ha nd for 80
and when the demand falls away he will
sell and deliver to the foreigner az a less
price than to us.
The large quantity OF auxiliary ma
chinery and supplies required for hand
ling, navigating and furnishing a ship are
practically all special and not applicable
to land uses. The number of ships built
In this country is so small compared to
the number built abroad, that we have
not had sufficient concerns in competition
for the trade to bring the cost OF supplies
down to a basis approximating the cost
in foreign countries The great dsadvan-
tage. however, that we suffer I'm compe-
tluon is not so much in the cost OF ma
terial and supplies, as from the very high
wages which we now pay in this country.
During a recent visit on the Clyde, the
piece work rates for all OF the hull depart
ment of shipbuildlng were obtained, and
we are to-day paying 50 per cent. more for
similar work in this country. notwith-
standing all the labor saving devices
which we furnish. and the same rate nc
doubt prevails IN the other branches OF
labor used in constructing ships. In Ger
many very large percentage OF the en-
ployes in the machine shops were re-
ceiving less than 81 per day. and the
average wages paid was not much more
than half the amount paid here.
REDUCING THE DIFFERENCE.
while the American shipbullders have
made great savings in cost by the install
lation of labor saving devices and good
management, they have not been able 10
reduce the costs up 70 this time suffi-
cient to compete for foreign work. Rec
ords OF cost dUring the past ten years
show, however. that we are gradually re-
ducing the difference, and Il Is not inn
probable that within a reasonable time
we may be able to enter into competition,
but to do so Il Is essential that we have
stable prices of iron-at least as low a
price as our manufacturers are willing 10
sell their product delivered abroad that
the shipbulldlng industry shall be encour-
aged so that we may have plenty of work
for five or ten years, in order to make
necessary improvements, to reduce our
costs and that the workmen shall be
satisfied with their present condition.
without putting any further. handicap on
the business, which is already operating
under SO many disadvantages.
1T must be apparent to anyone at all
familiar with the business of shipbuilding
that the American shipbuilder is not to-
day IN a position to increase the cost of
his product by making concessions. II we
were compelled to accede TO the demands
made by the workmen, It would mean a
material increase I'm the cost Of our ships
probably Of 6 or z per cent While this
country Is selling steel agricultural I'm
plements and many other products In
competition with the foreign trade II
must be borne I'm mind that most Of these
products are manufactured largely by ma
ehinery, and a very small percentage OF
their cost comes from day labor, while IN
the construction Of a ship about As per
cent Of the whole cost is paid out to the
workmen, so that an increase IN the daily
wages OF say 12k per cent. is equivalent
to putting an increase Of per cent. In
the cost Of the ship. In addition to the
increase in the cost, the reduction OF the
working hours from ten to nine hours per
day is equivalent to a loss Of % per cent
Of the working time OF the plant, which Is
equivalent to 10 per cent. of the volume OF
business done"