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Shipyards Bringing Down Costs Vessel Building Plants in East Reduce Wages to Encourage New Orders -- British Yards Hard Hit AGE reductions in the eastern shipyards are becoming more general, although the move- ment in this direction has not nearly approached the cuts in the wage scales in other industries in the same locali- ties. The Baltimore Dry Docks & Ship Building Co. has reduced wages in its yards approximately 10 per cent. The Bethlehem Shipbuilding Corp. has-taken a similar step. The Bethlehem yards are not a party to the general labor union 'agreement, but have maintained an intrashop agree- ment. Bethlehem's relations with its men, therefore, are not controlled by the labor agreements entered into iby the Atlantic Coast Shipbuilders' asso- ciation. The cuts in the Bethlehem plants affect the yards at Quincy, Mass.; Elizabeth, N. J.; Wilmington, Del., and Sparrows Point, Md. The Chester Shipbuilding Co., Ches- ter, Pa., has reduced salaries of all employes getting more than $125 a month, from the president down. The reduction is 10 per cent. This com- pany declared it was the intention first to reduce material costs and then overhead costs, of which salaries are an element, before considering reduc- ing wages. The Newport News Ship- building & Drydock Co., Newport News, Va., has cut wages 12 to 15 per cent. Following out the general tend- ency, the Attlantic Coast Shipbuilders' association announced that it would re- duce wages in all its member yards 10 per cent on March 1. This is the first time that the association has sought to effect any modification from the ex- 'tremely thigh wage scale imposed dur- ing the war. changed to later in March. "The shipyards have just completed an exhaustive investigation as to the possibilities of securing future busi- ness," declared Clarence Samuel King, secretary of the Atlantic Coast Ship- builders' association. 'This- investiga- tion embraced conferences with those banking entities who may be looked to in the future to be helpful in the financ- ing of ship construction, the operating companies who will actually purchase new vessels, and the shipyard owners themselves. It is apparent that the present freight rates obtainable for marine transportation and those which will prevail in the future make the re- turn on the investment required to construct ships at present prices of no The date was afterward interest to prospective owners, so that no business can at present be secured at current actual business costs. Fur- thenmore, the government has_ indi- cated its intention to a'ppropriate money for completion of ships at pres- ent building only if radical decrease in cost of construction, including wages, is assured. "As a continuation of this condition will cause a complete cessation of work at no distant date in many shipyards unless steps are at once taken to change conditions so that new business may be secured, the shipyard owners are making vigorous reductions in overhead expenses, and in the use and purchase of materials, and have fur- ther decided to reduce wage rates." Government Seeks Lower Costs An active campaign thas been _ in- augurated by the repair .division of the shipping board to reduce the unit of cost for repair work. This has been materially successful. Also, the shipping board has let it be known rather forcibly (that costs must come down if it is hoped to obtain sufficient money to complete. the building program which has been deft over from the war. The shipping board has re- ceived a settlement of $54,500,000 from the war department, making a total of $113,000,000 paid to date to 'the ship- ping board on account of war depart- ment work done. ThiS payment will go far toward restoring the funds of the board and make it possible to go through with the building contracts still in hand. The board still has a bill of $6,000,000 against tthe food ad- ministration which it hopes to collect and apply to ship construction. On Feb. 1, there was 404 vessels, of 1,579,398 gross tons, building in American shipyards. Tihe bulk of the construction was for private account, inasmuch as only 61 ships were at ithat time building for the Emergency Fleet corporation. Of the 343 vessels build- ing for private account, 140 are steel barges and craft of this type. One tanker was delivered, one launched and the keels of two more tankers were laid in American yards during January. The shipbuilding slump is even more noticeable in England. Holland has been able to capture from England a large share of 'the repair work and what orders are coming out in the European market for new tonnage are 163 tween New York and Greece. New York. going to Germany where the cost of building is approximately 30 per cent below the British. Among the foreign contracts held by English yards are only a few Norwegian orders which were placed some time ago upon firm contracts. Immigration restrictions and the un- certainty regarding ithe enforcement of prohibition on passenger ships have re- sulted in holding in abeyance a num- ber of important shipbuilding contracts which American companies are pre- pared to let. The most important feature of new work is the recondi- tioning of ex-transports which are gradually being released to private owners. Stephen Stephanidis, 24 State street, New York, and associates, 'have obtained the ex-army transport Ki- PATRICK, and will have her reconditioned for the freight and passenger trade be- Several hundred thousand dollars will be spent on this ship. The Southern Pacific Steamship Co. will withdraw the Momus in tthe spring and convert ther into an oil4burner. This vessel plys between New York and New Orleans. The United States Mail Steamship Co. is yet to let contracts for reconditioning the large passenger liners GrorGE WASHING- Ton, Von StTEuBEN, AGAMEMNON, AMER- ICA, PRESIDENT GRANT, MADAWASKA, Mount VERNON, Freepom and AMPHION. Launch First Section of Big Drydock The first section of a new 11,000-ton floating drydock projected by the 'Theo- dore A. Crane's Sons Co., was launched March 6, at 6.20 a. m., at its shipyard Erie Basin, Brooklyn, N. Y. Miss Margaret Ryan, Brooklyn, acted as sponsor. Alfred M. Crane, president and gener- al manager of the company, announced that the drydock would be completed and put in operation by Oct. 1, 1921, and that when all of the four sections were joined together, it would accommodate vessels 500 feet long, having gross registers. up to 11,000 tons. The dock will be one of the most modern in existence. It will be the third largest of its kind in the port of It is electrically driven, operated by a l-man control on pier at the head of the drydock ,and is equipped with the latest machinery. The dock which is being constructed by