New-York tribune., 1921-01-04
Reduction I'm
Sl,ipI''lildings =
Cost Expected
Bethlehem Steel Wage Cut
Regarded as Step III Plan
to Meet Competition OF
the Foreign Silipyards
Yards Likely TO Follow
gr tish Vessel Is Offered
Here for 500 Z Ton: Low
Figure for New Tonnage

Action Of the Bethlehem Steel Com
n.rv in announcing a cut in wages Of
=, to 20 per cent is regarded rs
.to forerunusr of g move to bring
American sh'pbWdins costs 10 q point
where they Wa, eventually be able
70 nleet foro'ga competition.
while the statement Of a reduction
bv the Bethlehem Steel Company was
not accompanied by a similar announce
meut in regard to the Bethlehem Ship-
building Corporation, one is expected.
AZ a meeting Of the Academy OF Po-
Nticai Science 1T the Hotel Astor sew
eral weeks ago Joseph ". Powelh tneu
v;ce-pres iGent OF tie bethlehem Snip
6uildias Corporation, pointed cut that
\ auifcrentlal or 20 Der cent i'm
labor costs existed in favor o. Brit
ish shipyayas AID that this handicap
must be overcome To assure The iuture
Of American sp-i- ding.
Mater.a! Reduction Seen
In the csse oi the Bethlehem com
vanies q cu- la wages viii effect a
double adva- -age in snip construction,
ing labor be reduced, but the materials.
machinery and lrOst Of the equipment
Of 5ae snips Will be obtained at lower
costs because they are manufactured
by the Bethlehem interests.
That similar action in regard 10
wages VIII be taken by the United
States Stee. Corporation is regarded
as .kely IN shlpbuilGing circles. and
the step is expected TO oe followed by
the allied interest OF tic corporation
the Federal Shipbuiiding Company. Ia
this case also the saipyarGs viii have
the advantage cf securing steel and
ether supplies frcm the .olaer concern.
In connection with The action Of the
Beth-enem corporation, significance,
a.tac.es 70 tie remarks Of Charles NJ.
Schwao. chairman OF the board OF d.
.ectols. in statement on the business
outloUS oe t1e year.
Economy, the True Test
business success cannot be meas
ured ny qIclts. be says. The only
true test il econcuy TIE dNHcu
which American business is experience
ing to-day are largely due TO the fact
that Qur business mon as profits rose
tailed 70 check imitation Of costs. and
INDULGENCE In wasteful and eEtrava
CANT met ods became general
"Llqnidation OF labor IS being urged
By many authorities as d n necessary pre-
lml1ary to restoration of prosperity.
and tae process is frelrent.y referred
70 Is involving serious difficulties. The
theory is that labol will .be called upon
y glrse i ID new standard Of
-vn- as t1c nigh wages aow paid by
No o-str are reduced.
IS the cost o'---.A>Yl1-2- declines, the
aoori-g man may Ieceiv, less wages
~ measured b. the amount cf none
involved tlan IS now the case, but he
IS prmar . lNtcre tad not in the mum
neT CT dollars paid hna. but in what
'hese dollars Wi. buv. He should be
agie to maintain his standard Of living
-neer tae new como tons and il this
lie 50 he vii. be satisfied.
Labor Should Participate
4 am enc Of those who believe that
iae .a1cs.n- man deserves conditions
fnit v.- make l'w work with zeal and
enthusiasm. ih-s is only rcsslg gle when
ae can oe sure thai he is getting his
AR share ri the wealth he produces
10 TINS be is entitled. For the best re
suits his employers should tako him
into the fullest confidence His eai-
1lencr VIII be increased thereby and
ne importance Of labor efficiency n
ell items ri manufacture cannot be
oTer-cmu1 u1atZcd. In the steel industry,
sor example. one-ha.f the total cost
u ma rg stee. IS the cost Of labor
According t. reports, the announce
ment Of Tire reduction i'm waoes was
MADE after conferences between oil
c.ss o. The hehew Stee. Corpora
non and rgte5entat.ves or the workers
Nlta tre Shipping Board having
millions oi tons IF vessels 70 be s0id
AZ price which viii probably be in Che
neiSn coI1ocd III 800 per ton, and wiz
iore-gr stits being offered in tins
market materially below the cost OF
Production here, ~ 9erican shipyards
save scored practically TO new orders
'yrssome tine past
Ne0 Ship at so Ton
4 enc of .he largest American shir
Operating companies Offices 1t va.
S,Stec yesterday that a.. effar had beer
feeeiYeo of = new British cargo steamer
% s,-9l -,ls GeaCwelg gnt al price
nat ~ tna Dreseut eechaugc rate.
sofss 0lt at about SEQ ton. Yhl.
yease w Ae ready for delivery IN .
ss" The price quoted IS tne
''%fs received ir tais market.
y is b. eyed, however, that the lop
pElee ls duo 81 -ac fac, that the crigi
lai purchaser cancelled tae contract ant
1prfe-er the AMOUNT of the purchase
price pad =. thus enabling ,he buildei
- ma.z. the vessel ngcu below the
eentraol fate There have been 40 man.
e@hcs.a'ior of contracts abroad re
csn'!y, nopever, that this type of ton
..4age, waic f. r ees not reDreacrt th'
.sgs- Of production coets. has Decom'
4a1ts factor lu this marIet.
New Norton. TilIv Partners