New-York tribune., 1920-08-30

ouiuihs snafes are rejecting the stu
alton, which is accentuated by the fail
ure OF the freight market to show signs
OF reviving activity and the continued
slow recession in rates.
Reports coming from the shipyards
tell OF cancellations of contracts and
the failure to secure new orders, al
though the werE IN hand is insufficient
to carry on with for some time to
come.
British Tonnage Prices Hold
;, There is no evidence, however, that
the cost of new tonnage has decreased
IN the slightest degree. The price OF a
nigh class cargo vessel to be delivered
within year, is estimated conserva-
lively at $40 deadweight ton, which at
the pre-war exchange level is about on
a parity with the prices in American
shipyards.
This figure, however, is an estimate,
as British shipbuilders are not quot
ing fixed prices, but are taking CON
tracts only on basis of the actual
cost of construction plus a fixed per-
centage of profit. AS this means that
the ship buyer, and not the builder.
VIII nave to meet any advances in the
cost of labor and material, and as these
advances show no signs OF ending pros
pective purchasers are disnclned to
place orders under the existing condi-
tions., American shipyards, however,
are still quoting fixed prices, the ship
builder shouldering the responsibility
Of meeting any increased costs for ma
terials and labor.
In connection with the reports Of can
cellations of contracts, interest at
taches to advices recently received in
this connection by the Shipping Board
At conference between representa-
tives of the British Federation of In
dustries and the Chancellor of the Ex-
chequer over the recent proposal to
increase the British excess profits tax,
1t was stated that seventy-six contracts
for the construction of new tonnage
had been cancelled during June. This,
1t was said, was due to the prospect of
heavy taxation Of the industry.
Cancellations as Weapon
The report now received by the Ship
ping Board, however, is that the cam
cellations were only provisional, and
were made more or less by agreement
between the shipbuilders and the ship
owners. The object is said to have
been to furnish data with which to
combat the proposed 60 per cent excess
profits duty, and also to provide ma
terial for effect upon the Forthcoming
decision of the Industrial Court rela-
tive to the demand for higher wages
by the workers il the shipbuilding and
engineering industries.
This decision failed to grant the de-
mands of the men, and it is stated that
the step was taken as q result Of the
evidence presented as to conditions in
the industries with which the claimants
were connected, rather than on the
presentation of data relative to the
advance in the cost of living.
High prices and continued shortage
of shipbuilding materials in the United
Kingdom continue to be reported, and
there has been considerable importation
Of ship plates. chiefly from the United
States. Scotch yards have been large
buyers. Despite the rail haul and
ocean freigEts, it is possible to lay
American steel down in Britain cheaper
than it can be produced there.
The British shortage of materials.
however, is now attributed more to
slow movement by railway than to low
domestic production or to reduced i'm
portation. While the tension is being
somewhat relieved by motor truck
transportation, upon which both the
foundries and the shipbuilders are de-
pending more than ever before, this
IS not looked to to take the place of
adequate rail transport
Labor conditions in the British ship
yards continue greatly unsettled. The
refusal of the Industrial Court to grant
the demands for an advance of ed per
hour made by The men has been fol-
lowed by national conference of the
shlpbullding and engineering trade
unions IN London, at which the follow
ing resolution was adopted:
THAT in view of the unsatisfactory
use made by the Industrial Court of
the four monthly hearing agreement Of
FEBRUARY, 1917, we recommend the
trades unions signatory to the agree
ment to give notice to terminate the
same"
Labor Difficulties Continue
While the resolution does not annul
the agreement referred to, the con-
stltuent unions are expected to follow
the recommendation.
Efforts are still being made in Great
Britain to get the workers to increase
production. AT a recent meeting of
the board of conciliation it was stated
that the operations of the sliding
scale plan had brought an increase in
wages of GO per cent in the previous
SIX months. 1t was announced that
contracts were being cancelled and that
foreign competition was making itself
severely felt.
Unless the cost of production could
be decreased, the meeting was told.
foreign competition would become still
keener. and in the future the situation
might be one of high nominal prices
and high wages, but little employment.
The way to help reduce the cost of pro-
ductlon, 1t was declared, was to make
an extra effort to increase output.