Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-17
FEAR OF COMPETITION
SCOTCH SHIP BUILDERS ANTICI-
PATE LOSS OF BUSINESS.
Shadow of American Subsidy Bill and
Cost of Material Dis
turbing.
Special Cablegram to The Star.

Special Cablegram to The Star.
GLASGOW, December 1.-THE heavily
capitalized Scotch shipbuilding industry Is
experiencing the truth of the saying that
misfortunes never come singly. Following
the labor troubles on the Clyde and Tees
comes the shadow of foreign competition
and the greatest fear is being expressed in
the Scotch local newspapers, lest the sub
sidy bill pass the American Congress in
some FORM thereby raising up another pow
erful competitor.
This country has made a practice OF
building ships for every maritime nation in
the world. the secret of the Scotch success
being. it is said. excellence of workmanship
and cheapness of production.
In Other Days.
Time was when every stage of the manu-
facture from the raw ore"t to the finished
product was carried out within the boun-
diaries of England and Scotland. Then the
foreigners, Germany more particularly, or
ganized capital and laid down plants for
the manufacture of plates and castings
which under the dumping principle were
sold at rates cheaper than it was possible
for the local manufacturers to produce. AS
a result of the hold secured by Germany
on the ship plate market many of the local
manufacturers have been compelled to close
down their works. The advantage which
lay in the supply of cheap plates however
has enabled Scotch builders to keep the lead
in the building output.
Now has come the inevitable rise in the
price of plates and castings which Of neces-
sity rests upon the quotations for the build
ing of complete vessels. This has been an
ticipated by continental builders who dur
ing the past few years have been investing
largely in shipbuilding plants of the most
modern types. One foreign yard alone at
the present time holds contracts for at
least ten large ships, some of which are
We'll advanced toward completion. All the
orders were secured in competition with
local manufacturers whose tenders were far
higher than those of their foreign competi-
tors.
The manager of large Scotch yard
whose speciality is the large cargo steamer
said only the other day that this growth Of
the foreign ship building is causing the
gravest concern among the local builders
and everywhere the hope is being passed
that the Sulzer ship building bill will not
be passed by the American Congress and a
new rival thus created in a year or two.
New Orders Limited.
"Of course orders for new vessels are be-
ing placed right along to limited degree"
he said during the course of an interview,
but so far as I can hear these tenders are
limited to local builders, the customers be-
ing so we'll satisfied with the execution Of
previous orders that they are prepared to
pay higher figure for Scotch-built vessels.
But it is needless to add that this Is hardly
an economic proposition, and that we can
not long exist in competition with others
simply on the strength of our regulations.
THE foreign builder has simply got to be
considered. In contracts open to firms on
both sides of the water the foreign tenders
have averaged fully 10 per cent below our
figures. Advices from the continent are to
the effect that the yards there are full of
work"