The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-05-13
WEDNESDAY, MAY 10, 1908.
THE sHlpBUILDING INDUSTRY

Stremnrks on the shipbuding industry :,
!America, showing that the William r.
ssTrigg Company OF Richmond was not TIN
only such company that had fallen int
"a trouble.
We find similar article in the Amerl
lean syren and Shipping. In which the
subject is discussed at length. This pa
per also refers to the embarrassment o!
the Cramp shipbuilding Company, point
Ing out that an issue OF S5,0O0.000 In the
companys notes has been made md that
there is a possibility OF the loan reaching
s7,5oOo0 to tide the company over Its
difficulties It says that this loan, so It
is understood. was necessary to save the
company from complete collapse At any
rate. the shipyard which has been in the
Cramp family for four successive genera
lions has now passed under the control
of the creditors.
About tho same time the William r.
Trigg shipbuilding Company passed into
Tile hands OF receivers, and still later
1.-THE Fore River Shipbulding Company,
thanother thoroughly modern plant, located
Vat Quincy. Mass, was compelled to pass
Its regular quarterly dividend. mot one
Of these concerns" says the American
6yren and Shipping, has been idle Of re-
Z cent years. and If the prices they re-
ceived for the vessels which they built
had been as enormous as alleged by the
enemies OF American shipbuiding, how
& Is 1t that they are all in such dire
straits?"
Mention is then made Of the Maryland
Steel Company. which was established at
sparrows Point. Md. several years ago
9iwith a view to building ships. The pres
ldent In his opening speech predicted a
great career for this company, saying
that 1t would bring It's ore in foreign
ships from Cuba, would turn the ore into
American built ships. which would in
turn bring the ore needed for future work
TO the steel plant, and the products would
be carried to the uttermost ends of the
earth In these same American built shlps.
But inside of three years this shipbuild-
ing plant was shut down and the concern
went through a reorganization, during the
process OF which the shpyard was closed
entirely for several years. The COM
pany has always found It cheaper to use
foreign built ships with which to haul
It's materials, and to this day its ow1,
shipyard has never built ship for the
companys use.
Passing on to speak OF the new COM
panies that have been formed In late
years, this publication says that In NIL
such undertaking it Is expected that sew
eral years. OF actual losses arc bound to
be encountered Immediately succeeding
actual readiness for construction, as In
making bids for work the cost of the new
draughting room, pattern ship. and so
on, cannot be charged up to the cost OF
the first vessels which are constructed,
1t being expected and understood that
these initial expenses are to run over a
considerable number Of years before be-
ing calculated in the estimates made In
bidding for work in competition with long
er established plants.
1t Is easy to see that the Richmond
shipyard suffered under this dlsadvan-
tage in the first year OF It's existence. and
would have been in better position later
on to make money.
Speaking Of work on government YES
sells. the American Syrcn and Shining
says what was said in the previous ar
ticle in The Times Dispatch that little
Or no money has been made on the build :
Ing OF warships FOR the government by
private American shipyards, for the rca-
sons last stated. In part. and also be-
cause in this class OF work unexpected
and extremely costly charges have so fire.
quertly arisen as to have left the COM
pany's balance sheets most invariably
showing a loss Instead Of a proht we
have heard The statement made that In
several instances. even the best ship
yards have been quite willing to surren-
Ger their contract on government work
after 60 per cent. OF the work had beer
done as the profit all seemed to be ir
that part Of the work. and on the finish,
Ing part there WAS a material loss,
But there has been keen competition
between shipyards for government wor,
for the reason, first OF all. that 1t gives
prestige to have such work and gives
q shipyard much free advertising when
new government vessel is turned out
and put 10 test. Hence the losses have
been cheerfuly assumed, but they have
been so general. says our contemporaries
that prohts have been almost nil in most
Of our modern shlpyards, with the re-
suit that the future has been looked to
to earn the profits expected when the
original Investment Was made
WE make these statements not by way
OF discolraglng the shipbuilding indus,
Try. but by way OF showing that the ex-
perience OF the Richmond yard was no,
exceptional. Like other shpyards. 1t tool
government work at a low price. In the
crisis the president and promoter OF tn.
concern fell Ill and was unable to give
the business bts Esr6onal attention. II /.