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Many Problems G Five Causes of the High Cost of Ship Construction in American Yards Are Pointed Out--Proposed Solution 2 s : os shipbuilding industry of this country is in a. peculiar--yes, remarkable condition. Before the war we had little oversea merchant shipbuilding. The war brought urgent demand for merchant ships. Large plants were built, both by the govern- ment and private enterprise, and thous- ands of unskilled men were employed in these plants. Today this country has greater ship- building facilities than any other coun- try. These facilities are largely manned by untrained and half-trained men. The problem before the shipbuilders is--what is to be done with these great plants and the army of workmen em- ployed therein? This must be answered by the government and the people of this country. At present all of these plants are en- gaged on government work. The gov- ernment has canceled many contracts and suspended others. The shipbuilder is forbidden to take foreign contracts. The American shipowner will not place any orders. If these shipbuilding plants are to continue in operation, they must be 'given work by governmental agencies. Before the war cargo ships were built in Great Britain at from $30 to $40 per deadweight ton. At the same time, some cargo ships of similar type were built in this country at from $60 to $70 per deadweight ton. But, mark you, the American shipbuilder made no money at these prices. The -American ship- yards were either bankrupt or on the verge of bankruptcy. Today contracts are being placed in Great Britain at $100 to $120 per dead-- weight ton. In this country, under pres- ent conditions, it will cost the ship- builder from $170 to $180 a ton to build the same ship. This is not a pleasant prospect either for the ship- builder or the country. The high cost of construction in this country is due to the following: 1. High cost of wages. The wages today are double what they were before the war. The wage 'schedule which was fixed by orders of the gov- ernment is approximately double the rates paid in Great Britain. 2. The high cost of mateyial. Be- fore the war steel- plates could be bought at $1.10, while lately the 10, y were $3.25--approximately three times as much as before the war. All other material costs have greatly increased. 'tion By Holden A. Evans President, The Baltimore Dry Docks & Ship Building Co. 3. The inefficiency of a large number of unskilled men taken im the yards, due to the enormous plant expansion. 4, Inefficiency due to rush war meth- ods. On account of the urgent mili- tary need of ships, speed of construc- was the only thought. This brought about extravagant methods. One of the results of these rush meth- ods is that the old trained men are not as efficient today as they were be- fore the war. It will take some time to bring them back to normal efficient methods. : 5. The inefficiency due to the rapid increase in wages. The men do not work as steadily as before the war. There is much more lost time. This statement of facts will not be disputed by any' experienced shipyard manager. What, then, is to be done to continue shipbuilding in this country? You will be told by some that the American workman is the most effi- cient in the world and that this is the answer. The American workman in some trades is the most efficient, but this is not true at the present time in ship- building. Ask Homer Ferguson, of Newport News; Joe Powell, of Bethlehem; Harry Mull, of Cramps; Joe Tynan, of the Union Iron Works, or any other ex- perienced shipbuilder. They will tell you that shipbuilding is a trade diffi- cult to master. They will tell you that the majority of their skilled men gained their skill and experience in shipyards abroad, and, furthermore, that the ship- yards today are filled with men who are just beginning to learn. What, then, is the real answer? It is probable that wages abroad will rise, and that the difference between our wages and theirs will not be so great as it is at present. The cost of mate- rial will surely fall and it seems as if in the near future our material for shipbuilding will be as low as it is abroad. The real answer is--remove the various inefficiencies that exist at present and educate and train the worbk- men, You can't expect us to learn ship- building in the few months in which we have been engaged in the work on a large scale. You can't expect us to compete with managers and workmen who have had years of experience, while we have only had our first lesson. It is probable that in the operation of ships on a large scale similar condi- tions will be found. American operat- 222 ors must be given time to learn before they can be expected to compete with those who have had years' and years' experience. | We in the shipyards must have work to do, that is--ships no build--and we must have. time in which to educate our staff, our foremen and our work- men if you expect us to compete with the world. If we are to maintain a great Amer- ican-built, American-operated merchant marine, the American people must in. some way or another pay for the excess cost while we are learning to build and learning to operate. In no other way will we ever get it. We have plants and machinery su- perior to the equipment abroad; we have aggressive and efficient shipyard managers; we have ingenious and in- telligent workmen. To carry on shipbuilding, give the shipyards and the American workmen in those shipyards a chance, a fair trial. Give the well-equipped plants ships to build, allowing a fair margin of profit. Let our managers and work- ° men have an opportunity to learn and progress. If you will do this, the extra cost will be well expended--I promise you that--the shipbuilding industry will nobly respond, and in a few years the United States will be the greatest and most efficient shipbuilding country of the world. Business Men Approve. By Otto Kahn Kuhn, Loeb & Co. N item which enters into our ex- port trade is our shipping policy. It is a vital thing that a far larger portion of our trade than heretofore be carried in our own bottoms, that we establish shipping lines, that we do not depend upon the good-will and the con- sideration and the disinterestedness: and the unselfishness of other nations. Mr. Hurley, recently, put © forwards <3 carefully framed and carefully thought out program to deal with that question. I am frank to say that I have not suf- ficiently digested it--it is a complicated and difficult thing and a good deal can be said on both sides--to express an opinion about it, except to say that in a general way it seems to follow lines of which the business community will cordially approve.