GOVERNMENT STEEL FOUNDRY
GeneralNakamura, the head of the Government Steel Foundry, when interviewed in Tokyo, desired to express regret at the impression given to the public that he advocates a high tariff on steel imported from other countries, for the purpose of advancing the interests of the institution which he represents, to the detriment of foreign producers and to the exclusion of necessary importations from other countries. In reply to questions he stated:—
“I do not advocate the increase of the tariff, nor has the question yet been considered by the Government. What I said was that, among the causes of the hard position in which the foundry is placed is its inability to compete with supplies from abroad. So far losses have been sustained by the foundry, but without an endeavor to place the value of the turn-out on a par with foreign imports, how long can this be done? We are endeavoring to regulate this, and possibly a more radical, or somewhat readjusted, protective policy may be beneficial.
“There are, of course, other causes for the still undeveloped manufacture of steel in Japan. The present output is insufficient for the needs of the market. Only one-third of the supply needed is made by the Government Steel Works, and even this one-third does not include what is needed for the other branches of consumption, such as machinery, hardware, etc. On the other hand, the demand for steel has considerably increased from what it was beforethe war, and has so very much outstripped the supply as to be a cause of anxiety to me as director of the works. The fluctuations in the price of steel, which have been considerable, have also had a serious effect upon the market. In the perfecting of the quality of the material itself, for the first time this year it underwent the inspection of Lloyds, and it was pronounced that the output was qualified as material for shipbuilding, provided it passed examination. The Government Foundry has therefore been registered at Lloyds.
“There is, as stated, great opportunity for the development of skilled labor among the operatives, and considering that iron work is so difficult, the progress made is most gratifying. Most of our instruction in steel manufacture has come from Germans, and most of our officials are graduates of the Tokyo University who have studied abroad. In the housing and care of the operatives some care is taken. Rent is free, but the accommodation is not adequate to shelter the 9,000 employes. Secondly, there is a convenient supply of food at low rates, a commissary, and in case of injury a relief fund, which provides medicine and temporary wants, and, in the case of death, looks after the widows and orphans. A society for this purpose has been formed, and its interests are one of my chief concerns. The operatives are recruited from Fukuoka prefecture and from other parts of Japan, and while not feeling that the Japanese are particularly adapted to this work, given the time and experience I am pleased with the results. The average age of the operatives is thirty, and so we have the advantage of youth and strength in our favor. The Chinese mine at Taiyeh supplies one-half of the ore usedby us, and the rest of the ore is brought from different parts of Japan. Owing to the condition of transportation the price of iron is appreciably dearer than in America. Beside the material supplied to our army and navy, the remainder is sold on the open market and consumed in the usual manner in the manufacture of utensils and implements of commerce. The machinery used in our workshops is from Europe and America, wherever we find the best and most up-to-date plant.
“In conclusion I want to say that this question of duty is a serious one—an exceedingly serious one—one which entirely rests with our Government, and it is not my part to enter into the decision except to present existing conditions. It is the purpose of the Government Steel Works in time to supply the whole demand of the country. This is our ambition, and that is why we are focusing our attention at this moment upon the causes of our inadequate production and failure to make good our initial programme.”