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Repair Work to Aid Shipyards Reconditioning of Vessels Now Idle Will Bring Rush. of Orders--Costs Are Sharply Reduced HIPBUILDING basic costs are S declining... Practically all ship- yards have now put into effect a reduction of 10 per cent or more in wages. In manyginstances the same reduction has been spread to salaries. But where salaries have not individual- ly declined, the overhead has _ been materially reduced by eliminating posi- tions in the executive offices. The reductions in wages and salaries have been effected without too great a dis- turbance although the wage reductions were not put into practice without some trouble with labor. Materials are cheaper, which is an- other important factor in the indus- try: Plates today cost around 2720 cents, Pittsburgh, while during March a year ago, plates were quoted as high as 4.00 cents, Pittsburgh. Steel prices were at their peak at this time last year, having reached a figure much higher than that prevailing during the period of the war or immediately after. In 1919, plates were quoted around 3.00 cents Pittsburgh. The war price was 3.25 cents. Despite these reductions, little new business has appeared in the market. Some yards report starting work on miscellaneous small craft. Limited construction of harbor boats and fer- ries is scheduled, but steamship com- panies are holding back awaiting the pronouncement of a definite maritime policy by the new administration at Washington. The eastern shipbuilders are encouraged, however, as they are anticipating that their reduced costs, resulting in declining prices for new ships, ultimately will appeal to the steamship owner. . It. has been fore- casted that should the new scale not appeal to the shipowners another re- duction in wages will undoubtedly be made about August. Labor Costs Cut Shipyard wages are still much higher than wages in companion industries. Notwithstanding the expected objec- tions of the unions, a reduced wage scale is to be expected with every decline in the volume of building. The Bethlehem Shipbuilding Corp. last month laid off some 400 men at its Harlan plant. Other yards are similar- ly restricting their forces: Hog. Is- land is now in the hands of caretak-- ers. The ship repair yards of the New York district have reduced wages 10 per cent and put into effect a re- classification of the crafts. This effects a savine of from 2% to 5. per, cent. The repair yards in the Boston dis- trict have also reduced wages. The ship calkers were reduced 8 cents an hour and promptly initiated a strike. Ship construction during February -was the smallest since the war. Ac- cording to the official records, only 19 seagoing vessels of 110,369 gross tons were officially numbered. Includ- ing the nonseagoing vessels, a total of 121,404 gross tons. of shipping was built in that month, which was below even the past December record. The February construction was nearly one- half the January figure. The March record was not much better, although the yards are anticipating considerable repair work. Repair work will increase from now on. The American Bureau of Shipping reports on March 1 .a total of 330 ships representing 1,434,246 gross tons were under construction, including 276 merchant craft of 998,834 gross tons contracted for private account. These figures vary from the totals issued by the commissioner of navigation who reports 227 steel vessels of 901,229 gross tons were building or under con- tract on March 1. The larger share of these contracts is held by the Beth- lehem Shipbuilding Corp. Merchant Shipbuilding Corp., New York Ship- building Corp., Newport News Ship- building & Dry Dock Co. and Federal Shipbuilding' Corp. On the Pacific coast, the greater part of the con- tracts is held by the Moore Ship- building Co., Northwest Bridge & Iron Co., and Southwestern Shipbuilding Co. Construction for the Emergency Fleet -corporation is less than one third of the total of the contracts held by American shipyards. Despite the tremendous slump _ in shipbuilding, it is a notable fact that STEEL SEAGOING OIL BARGE CONSTRUCTED BY THE DOULLUT & WILLIAMS SHIPBUILDING co. 215