Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-07-10
HOG ISLAND HEAD
ASKS NEW LAWS
Yard Cannot Be Permanent
Unless Congress Acts,
Declares Stone
RAPS LA TOILETTE ACT
Profit Will Be Only Little
More Than One Per Cent,
He Asserts
RAPS LA TOILETTE ACT

Whether the big shipyard at Hog
I Island will disintcgrate after the war
or remain there permanently depends
upon Congress. according to Charles A.
Stone, president OF Stone & Webster,
builders of the shipyard and president
of the American international Corpora
ton
Should present laws that blocked
growth Of the American merchant
marine before the war he unchanged
Hog Island will pass out of existence
he said.
Mr.. stone referred particularly to the
La Toilette act, with its restrictions on
seamon saying it must be repealed If the
American merchant marine is to COM
pete on equal terms with the other great
nations of the world
Less than ia per cent will he re-
cciNed by the American International
Shipbuilding Corporation on the $780,
ouo.oOo which the construction sf the
/ shipyard and the first 1870 ships is to
cost, Mr. stone said. His statement was
supstantiated by Peter O Knight, gen
era counsel of the company and by
Major F. J. Case, Of Stone & Webster.
The Government will pay us Il fee
OF from $4,000 to 100000 for each ves-
sci we huild for the Emergency Fleet
corporation. according to the time of.
delivery" said Mr.. Stone. while the
Government gives us this fee for build
Ing ships more rapidly than they have
ever been put out before, more than half
/ OF 1t is taken from us in the form OF
war tax. We have constructed the shin
yard without a cent Of remuneration
are paying the officers of our organiza-
tlohs-the New York Shipbuiding Cor
poration. Stone &. Webster and the
American international Corporation
OUT OF our own treasury. and the fee al
/ lowed us, normally $4,000 on static
( minimum cost basis of from $1,l1O 900
| to Sl'G5O,O00 a vessel, is less than per
cent.
I'm every form of constructive work
the contract is customarilv made out
! IN such manner as to reCompense the
engineers at the rate of 2ia per cent
1or drawing up plans and specifications
and 7la per cent for actual construc-
tion-a total of 10 per cent. On the
entire sums involved we stand to make
/ less than 3la per cent gross. not net
profit, and on top of that we must give
up more than half of this amount in
\ war taxes.
What I am particularly interested in
! uolns just now is to correct certain mis-
! conceptions that have arisen in regard
TO Hog Island. The contract for the
! yard and the ships we are constructing
4 there was made by Admiral Capps and
myself. Admiral Capps is one of the
| ablest men in America and a past master
/ at the art of getting things done for
the Government at minimum fee Ad-
! miral Capps told us the country was
facing crisis and said You will have
to make contract to do this job at q
lower figure than any job approaching II
has ever been done before
THE men who went into the venture
! did SO out Of love and patriotism. giving
! their all to push II through. They went
! into it because they knew shipping and
/ knew the Importance Of creating an
I American merchant marine. And de-
spite the criticisms leveled against it TO
! the effect that We have had no genuine
I shipbuilders engaged on the job of build
( ing the greatest shpyard ever known
/ I wish to say that not only did we have
| shipbuilders working for US. but we had
! the greatest shipbuiders in the world
to boot"