A Journey Through France in War Time Part 16

In accordance with your request, I beg to submit the following report, which is the result of observations and information obtained, regarding the particular industry represented by me.

Quite unfortunately, there were only a few visits to steel plants of any importance and the information gained is rather superficial.

I noticed a dearth of labor-saving devices, and quite prominently the absence of safety appliances. I also observed that notices to the employees calling attention to probable dangers were not as plentiful as in any model plant in the United States. It is quite probable that there are many plants in France that are more up-to-date than those we visited.

I have information in regard to the condition of the iron and steel business in France at the outbreak of the war, but we are only concerned with its present condition and its probable condition when the war is ended.

The acquisition by Germany at the close of the so-called Franco-Prussian war resulted, as in well known, in Germany taking over the tremendous fields of iron ore and coal located in Alsace-Lorraine. It is my belief that this absorption is largely responsible for the prosperous condition of the iron and steel business in Germany and its being in second place in the world's production. I am a.s.sured by men prominent in the iron and steel trade in France, and by others connected with the government, that the war will not end until these valuable mineral deposits have been restored to France. It is remarkable that with this serious handicap, France has been able to accomplish so much in the way of steel supplies for its munition plants and other plants making war material accessories.

From my observation, nearly all the iron and steel now produced in France is being turned into war material and materials required for other purposes have been furnished in a minimum and scanty way. In other words, the whole of the iron and steel interests in France have been mobilized by the French Government.

The last report I have seen on steel and iron production in France is dated May, 1915, but I am told on good authority that since that date the production has doubled.

With the reacquisition of the Alsace-Lorraine iron and coal deposits and possibly the acquirement of other fields which our French friends seem to have in mind there will still be a shortage of coal. However, it is expected that after the war closes, France will necessarily be obliged to export a good portion of its production of iron and steel, by reason of the increased productive capacity of its iron and steel plants.

Incidentally I might mention that, when we were in Ma.r.s.eilles my attention was called by the Chamber of Commerce to the fact that France would be in a condition to export large quant.i.ties of iron ore from Algeria to the United States, and if this project could be worked out and return cargoes of American coal brought to France it would be very desirable, meeting the shortage of coal, which is inevitable. The a.n.a.lysis of this Algerian ore shows the quality to be such as would produce high-grade steel materials. A detailed a.n.a.lysis will be furnished to any one who may be interested.

It is interesting to note that in the departments of Calvados, Manche and Orne, there are rich deposits of iron ore yielding in some cases 45 to 50 per cent metallic iron. These deposits before the war were leased by the Thyssen group of German steel manufacturers, but are now in the hands of the French sequestrators. I understand that quant.i.ties of this ore also were in great demand, and frequently shipped to the iron works of South Wales.

I examined the steel plant making steel by the electrical process, but the examination was very brief. I have a.s.surance, however, that the manufacture of steel by electricity in France has been very successful not only mechanically but financially and is sure to grow. There seems to be a large area in the eastern part of France where water-power is available, and I think that many new plants, and much activity will prevail in this particular region, when affairs again become settled. The use of water-power will overcome to a large extent the shortage of coal.

I think that when the war ends, the imports to France from the United States of iron and steel will be confined to special forms and that France will be able to compete not only with the United States, but also with other countries in the matter of exports of general iron and steel products.

With the port improvements contemplated at Bordeaux and Ma.r.s.eilles, world-wide markets will be opened for France. The contemplated improvements at both these places will, no doubt, be fully cared for in other special reports, or perhaps in the general body of the report which the commission may issue. The ca.n.a.l at Ma.r.s.eilles should receive special mention in the general report.

The tariff question in France is in about the same condition as in the United States, with the exception that in France custom duties are handled quickly and settled expeditiously by the government.

Duties may be raised or lowered over night to meet contingencies.

The labor in French iron and steel plants is paid very much less than in the United States; in many instances one-half and even less. There are very few disturbances, and dictatorial labor unions such as we have in the United States are unknown in France.

A large number of women are employed in France doing men's work, which keeps wages at a lower level than would otherwise be possible. All the members of the commission have seen in their travels women doing men's work, and performing manual labor which in our country would not be thought of for a moment. Employment of women in steel and munition plants has, of course, increased the number of women workers since the war commenced. This, I think, is largely brought about by the patriotic feeling which prevails all over France. "Working for France" is a slogan rooted and imbedded in the minds of the people, whether they are soldiers, or engaged in any other occupation which may tend to end the war and save France.

Cooperation in France among all manufacturers of iron and steel and in fact all other industrial works, is marvelous, and could well be imitated in our own country. The various special branches of metal trades have both local and national syndicate organizations for the discussion of their trade problems, and means of voicing the particular needs of their trade, on which a majority sentiment has been expressed. These chamber syndicates are in turn combined into a National Union. These national unions are members of the Comite des Forges de France, which is the cap stone of the trade organizations of the steel and iron industries. The most striking fact to an American regarding the personnel of the governing board and general committee of the Comite des Forges de France is that a considerable number of its members are in one or the other of the legislative bodies, and practically hold positions at the head of the Government Committees, organized to look after the very business in which they are engaged.

In spite of the fact that at the beginning of trench warfare, France had lost behind the German line 80 per cent of her normal pig-iron production, and 70 per cent of her steel production, it has been possible by the utilization of lower grade ore in other districts of France, and which were not exploited to any extent previously, to increase the steel production of the country 100 per cent over that of last year. The interesting fact regarding this is that of the production which has been cut off the larger part in pig iron is of so-called Thomas iron (non-Bessemer), and in the case of steel, mostly "Martin" or acid open hearth. Neither of these products enters to any considerable extent into the manufacture of projectiles. The plants in the center and southern part of France were already producing the special qualities of steel required for artillery use, hence the amount of special quality steel brought in from foreign countries, in both the raw and semi-manufactured state, was an immediate necessity for the country at outbreak of hostilities. It is also noticeable, and based on information obtained from leading steel manufacturers, that many idle and in some cases abandoned plants have been rehabilitated and utilized as far as possible. As a matter of fact, I am told that there is not a single idle plant of any kind formerly engaged in the manufacture of fabrication of steel that is not now in full operation, either in its original form or by being transformed into a munitions plant.

It is only too evident that the present pre-occupation of steel manufacturers is to bend every effort to a.s.sist in the final military victory of the Allies. However, I met steel manufacturers, conversing with them freely, and their mental att.i.tude is that when the military victory has been achieved and France has again entered into possession of her own, they are determined to succeed in producing a close union with the British producers and thus prevent a rapid return of German industrial prosperity. With this fact in mind, it seems clear to me that the United States will have to make up its mind in which field it will choose to work. It certainly will be impossible to continue to hold a position of theoretical neutrality.

Welfare work in Le Creusot is in a high state of efficiency.

Comfortable modern dwellings are furnished the employees at low rental. Hospital facilities are of the best and everything is done to bring the workman in close and harmonious relations with his employer.

It has been suggested that I embody in this report something with reference to the mines in France, but as the data concerning them has been printed in public doc.u.ments of the French Minister of Mines, I will omit this detail with the single word that these reports include minerals of all kinds.

I am indebted to John Weare, representative of the United States Steel Products Company in France, for valuable information in the preparation of this brief report.

JOSEPH G. BUTLER, Jr.

In the early part of December I was requested by the Financial editor of the New York Times to give my views on the present outlook and more particularly with reference to the condition of the American Iron and Steel industry, brought about by the war. This letter to Mr. Phillips is copied.

December 20th, 1916.

Mr. Osmund Phillips, New York, N. Y.

My dear Mr. Phillips:--

I have before me your circular letter of the 8th instant and your kind favor of recent date.

In reply to your question--What is the outlook for business in the early months of 1917?

The outlook is good. Our mills and plants for several months could not nil the domestic orders even if the war orders were entirely withdrawn. I am told that all the recent orders placed are firm and are to be filled regardless of the ending of the war.

Will the end of the European war mark the end of the present period of prosperity?

This is a broad and doubtful question. I do not think the end of the war will end the present period of prosperity. There will be a temporary halt. I might add in this connection, that in my judgment the last overture from the Kaiser may result in the cessation of the war, but I believe this period to be quite a distance off.

There are three parties in Germany. First, the Kaiser and the Prussian Military circle, who have been in charge and have carried their own way up to very nearly the present time. Second, there are the people of Germany who are the common people, the good substantial people, the majority of whom have been kept in ignorance of the real beginning of the war and the cause for its continuing. These people are commencing to get information and as time goes on will be in full possession of the facts. Third, the business men of Germany. There are no better nor more substantial business men any place in the world than those in Germany; these men are really responsible for the building up of Germany and it is my opinion that these people are now responsible for the pressure that is undoubtedly being brought on the Kaiser and the military party for the settlement of the war. I believe that this pressure will continue until a settlement is made. These business men recognize that the longer the settlement is put off the harder it will be for Germany.

In your opinion, what proportion of the country's total trade, both foreign and domestic, during the past year, was due to the war?

I think about one-half of the trade of the country is due greatly, directly and indirectly to the war.

Do you think that labor demands have exceeded labor's fair share of the increase in profits?

I do not think labor demands have exceeded labor's fair share. The high cost of living fully offsets the greater wages paid.

Do you think present wage rates can be maintained?

I do not think that present wages can be maintained indefinitely.

There will undoubtedly be a reaction with a certain reduction in the cost of living and labor will have to share in the reduction.

What do you think of the important legislation pa.s.sed in 1916 affecting business, including the eight hour day, increase in income tax, the shipping bill, retaliation against foreign trade interference, etc.?

The eight hour a day law was an abnormal affair undoubtedly forced through for political purposes, and never should have been pa.s.sed and should be promptly repealed.

The increase in the income tax is all right.

The shipping bill will be valuable if the right kind of men are put on the Commission. Some of these under consideration are wholly incapable.

I believe this answers all your questions.

Very truly yours,

J. G. BUTLER, Jr.

When the special report I had prepared and published reached France I was favored with a number of letters from prominent people in that country, containing comments on the same. There were probably one hundred of these letters, from among which I have selected the following as of sufficient interest, either because of their comments or the prominence of the writers, to make them worthy of reproduction here: