The citizen. (Honesdale, Pa.) 1908-1914, 1912-01-24
LABOR COST AND EFFICIENCY

We have been told for years bJ
the Democratic Free-Traders that thd
high wages OF this country are off
set by the increased efficiency of ou
workmen. Now comes the report o
the Tariff Board on wooden manu-
factures. Here is what it says OF
this subject:
The cost of manufacturing wooleI
and worsted yarns and cloth in th1
United States is much higher than ID
Europe. The main elements of cos
of production are cost OF plant, ma
terial, and labor.
The cost of creating and equippin
both wooden and worsted mills d
much higher in this country than ID
England. The cost of erecting and
equipping a wooden mill is about
per cent. greater. The same is truS
of the weaving department of
worsted mill using American ma
chinery.
The excess In cost IN the case o
worsted spinning is greater, as mos
of the machinery is imported. ThiI
pays a duty of 45 per cent. ad valorI
EN-, and to this must be added
charges for packing, freight, ETC.
which makes the foreign machin3
cost 20 per cent. more or over in thil
country than abroad. Nor does thiI
include the cost of erection, as doeI
the price to the English manufac
turer. The same is true of weay
! ing machinery when imported.
The material is increased in price
by the duty on raw wool. The man
ufacturer who imports his wool mus
pay the full amount of the duty
and this means either additiona
working capital or an additional in
terest charge to be paid. Wool
grown in the United States are in
creased in value by the duty, bu
not by the full extent of the duty
| Wages are much higher in thu
United States, but wages are Id
themselves, no necessary indication
of relative cost of production. The
question at once arises whether thu
labor in American wooden and worst
ed manufacturing is more efiicien
than such labor abroad, or whethe
by more efficient management o |
greater speed in machinery th}
American manufacturer is able t
get a larger product per operative
in proportion to the difference il
wages.
1t appears that this particular in I
| dustry is one in which the high ele
ments of costs in this country arr
not in general offset by any particuE
, lar advantage or by any marked
superiority in the efficiency of labor
To a certain extent, European coun
! tries have the advantage of us il
/ this latter regard. In the center
/ OF the industry abroad there is al
/ adequate supply of labor which ha
I been trained for generations in thi
one industry. In the United State
a considerable portion of the labo
| is found to be of unskilled immi
! grants with no previous experience
! in manufacture; and in certain cen /
/ ters this population is of yer
| fiuctuating kind, and the manufac
turer is obliged continually to brea
! in new set OF inexperienced opera
/ tives. The American tendency to Sc
cure the maximum output is notice
! able in some cases, but comparin
, this country with England. at least
it may be paid that the possibilitief
of speed have been practically reach f
ed in the latter country.
So far as worsted spinning is con
cerned, the best mills in this coun
try seem to- be able to operate wit
fewer operatives per machine, an@
to get a greater product per opens
tive, than in some European couV
tries, but If this means a sacrifice =
quality of product TO output it is no
really a decrease in cost. Looms i
the Bradford district run, on thl
whole, at a higher rate OF speed thai
do looms in the United States. Fun
thermore, there is no superiority n
American machinery over forelgt
machinery. AS a matter OF fact.
large amount of foreign machinerI
is used in this country, and in thI
worsted mills covered by the inved|
tigation into machine efficiency 81
per cent. OF all the machinery, fro1[
the securing of raw wool through u
the finished yarn, was imported
Only 22.9 per cent. of looms wer1
imported.
1t may be said, then, that, takin
J the industry as a whole, the Amer
, can manufacturer practically has al
advantage in efficiency OF labor an |
equipment over his foreign competI