The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-06-14
STEEL TRUST SPELLS
RUIN TO SHIPBUILDERS
Cause of g. S. Shipbuilding
Company's Downfall.
RECEIVER NOW APPLIED FOR
Charged With Raising Prices So High
That Customers Go to Europe to
Get Vessels More Cheaply.
RECEIVER NOW APPLIED FOR

It was said in local transportation
circles this morning that the United
States Steel Corporation has indirectly
wrecked the United States Shipbuilding
Company. An application has been made
for receivers for the latter organiZa-
ton
Something of the kind has been eX-
pected for q long time by all who have
been watching the progress OF events
The great steel combine had raised
prices until the builders had TO con-
struct ships at no profit. or charge so
much that the owners of steamships re-
fused to enlarge their fleets, either max
ing some arrangements abroad for yes
sells when needed, or doing without, be-
neving that In time the prices would
fall
Even the United States Government
was involved, the bidders for the bat
tleships asking so much for constructing
the new vessels that the Navys,Depart-
ment held up the bids until an investi-
CATION had been made. The builders
showed to the satisfaction of the depart
ment that they were compelled to pay
in some cases % per cent over what was
charged them a few years ago.
Labor and Material Higher.
1--WE are between the devil and the
deep sea- remarked the president OF
one of the biggest shipbuilding COM
panies in the country yesterday, who is in
Washington in connection with building
the 13.0O0-ton ships now planned by
the Navy Department. Labor is from
10 to % per cent higher than it has
been in years, and when one adds to this
cent there Is no profit left for the
builder. if the ships are kept within the
appropriation limits set by Congress
Had the ship subsidy bill been passed
things would have different"
The president did not explain how he
expected the steel combine to make
lower prices if the bill were a law.
The action in the United States Ship
building Company's affairs was taken in
the United States Court in Trenton Ar
application for receiver was made by
Roland c. Conklin, a stockholder. who
alleges that the company is insolyent
The order was issued, and 1t was made
returnable Monday.
Lewis C. Nixon. a former naval Off
Ger. is the president OF the company
1t has capital of 10000. 600
Need Cheaper Raw Material.
The shipbuiIding industry-that is,
the iron and steel shipbuilding this
country is in a very bad way just al
present" continued the official above re
ferred to, land where it will end I do nc:
know. To compete with Europe we mus
have much cheaper raw material than We
are now getting. If We could do this
the difference in the cost of labor could
be overcome. But we cannot expend
60 per cent more than do the builders
Of Europe. and expect to put out vessels
as cheaply as they do. It is no wonder
that business men are going to England
for vessels. and are sailing them under
the English and other flags, when they
can buy these ships from so to SO per
cent cheaper than they can get them
here.
This condition is going to continue
until subsidies are provided just as Eng
land provides them, TO overcome the Diff
1erences. When such law is in effect
The business will again come our way.
THE labor organizations. as 1 under
stand it. were opposed to the ship SUP
sidy bill. but for what reason no one
but themselves can say inteIligently.
These organizations seem TO overlook
the fact that the subsidy will boom
shipbuilding and give employment TO
tens of thousands of men who are now
out of work
Conditions Changed.
THE labor leaders do not seem 20
stop and observe that no less than so per
cent of ali the millions spent will go
into wages in the steel and iron mills
and in the yards and shops where the
vessels are built.
THE statement is also made by people
who are unfamiliar with the situation
that this country once had the largest
merchant marine in the world and that
all OF these vessels were built without
aid from the Government They seem
to overlook the fact, however, that in
those days all ships were constructed Of
wood. and the forests OF the United States
came down 10 the edge OF the seas,
while England and the other countries
had TO import nearly all of the timer
USED in their vessels. Now the condi :
ton is changed. With the building of
iron and steel ships England found her
material at the doors OF her yards.
Hence the advantage OF this country
came TO an end"
The speaker intimated that a new
ship subsidy bill would be prepared at
the coming session OF Congress.
ATTEMPT TO BURN A
nIItRhHO unTEi EhI Q