The Washington herald., 1919-01-01
Financial NeuJj--Stock Market Prices
BRITISH PLANTS
MAY COME HERE
Possibility Of Operating "a
Hours Daily Appeals to
English Manufacturers,

When in the first year of the war
the British government took over one
of the large manufacturing plants in
Great Britain so that it could be
utilized for war purposes. the owners
OF the plant. who were manufacturers
of a peculiar kind of cap or turban.
were deeply concerned fearing lest
The loss of their plant during war
times might permanently and serious
IL affect their business. The concern
had been in operation for a little
more than one year. Its name and
trade mark are favorably and widely
known in many Of the markets of the
world.
The owners asked one of another:
t.what are we going to do about
this?'' And il was at last suggested
that they send to the United States
q representative, with instructions to
secure, II possible, a large plant
equipped with adequate machinery.
II this could be done then the Eng
llsh company would transfer its man
ufacturing operations to the United
States.
Sought Hnrbor Property.
A little more than "a year after
the war began the representative Of
the English manufacturing company
visited the United States. Among
others whom he called upon was a
man who was familiar with factory
properties. especially in New Eng
land. and who also has been inti-
nately associated with the steel in
dustry OF the United States. This
man undertook to find a factory
property suitable to the needs Of
the English company. situated near
some one OF our harbors.
Many manufacturers were ap-
preached with somewhat tempting
offers for their plants. but for 4
time all refused to consider very
favorable offers for the use Of their
plants. The reason that was given
was that the companies were al
ready engaged in profitable war
work for the government.
At last a large plant which had
been engaged for many years in
the textile industry and which was
located near deep water in Con-
necticut was found to be admirably
adapted for the purposes of the
English company and. fortunately,
the owners Of this property were
ready to listen to propositions.
Good Bargain Made.
Little negotiation was needed in
order to perfect a bargain. The Eng
lish manufacturers having examined
the machinery and found that. with
trifiing changes, it was well adapted
for the manufacture OF the product
that had been long made in England.
within a short time established their
own manufacturing works, in this
plant. They were men of enterprise.
of broad understanding of marketing
conditions. and for that reason they
determined to adopt a different method
Of manufacture. at least SO far as
labor was concerned, from the one
which Is characteristic Of many
American industries. They proposed
TO operate their establishment for a
full day of twentyfour hours, or
ganizing three shifts of labor.
Paid on American Scale.
This experiment proved satisfactory.
The machinery was in operation day
and night The working men received
the American scale OF wages. Speed
lily a large amount of the commodity
was produced and shipped to Calcutta.
where il found a ready market After
sufficient time had elapsed the man
ayers were able to make accurate
of manufacture. including high wages.
towards the gross and net amount
received from the sale of the COM
modities. They found that their net
profits were 70 per cent larger than
they had ever obtained when operat-
ing a similar plant in England.
This manufacture was continued and
is in operation today. The gross sales
since the English company began
manufacturing in Connecticut already
amount to about nine million dollars.
and not a single one Of the articles
produced in the United States by this
company has been sold in America.
All Of the output has been marketed
abroad.
English Teach n L~sson.
By operating the plant without ces-
sation for twenty-four hours every
day the company was enab bled to Sc.
cure a great reduction on overhead
charges; that is to say. the machinery
being employed every hour in the day
was therefore constantly earning for
the company. In England the COM
pany was able to operate its machin-
cry. by reason of the restrictions OF
the labor unions. not more than seven
hours a day. The rest of the dav the
plant was lying idle. Furthermore.
the labor unions restricted the uuantl-
ty of the production.
Here there was no restriction. There
fore the company was able to pay
wages upon the American scale and
even wartime scale, and nevertheless
earned 20 per cent in excess of the net
prohts the company had earned in
England.
Thls method Of manufacturing has
taught a lesson to some American
industrial leaders, whereas, on the
other hand. the English manufacture
ers are so well satisfied with their ex-
perience in the past three years that
tney now purpose remaining perma.
nently IN the United States, carrying
on their manufacture upon a largc
scale in a plant formerly occupied nv