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The CHAIRMAN. I can see how cotton duck might be a great deal higher manufactured at a mill where there is free labor; but here you do not pay the same wage to the operators that are paid in the mills outside.
Mr. McGlassox. \'p to date we have not paid any wage, although the law authorizes the Attorney General to pay a wage.
We have not been running very long, only since the 1st of last July.
The CHAIRMAN. How many looms have you in operation?
Mr. McGlasson. We have 400 looms. They are not all in operation. We have not enough business in the way of orders to operate all of them, and what business we have only furnishes work for certain kinds of looms..
The CHAIRMAN. You do not have enough demand for the material
Mr. McGLASSON. We are unable to get orders from any Government department except the Navy Department.
The CHAIRMAN. And you are only authorized to sell to the Gov. ernment?
Mr. McGLASSON. Yes, sir.
Mr. McGlasson. They have not placed any orders. They tell me the reason is that with the cessation of war activities they had a large surplus of duck on hand. They had bought large quantities of it and they are anxious to sell rather than to buy.
The CHAIRMAN. Do you make more than one grade of duck?
The CHAIRMAN. How does your cost price of production compare with the price at which commercial institutions are selling a similar quality of duck?
Mr. McGLASSON. Our price would be about the same. You might think it should be less, but we are up against this proposition. We are trying to run a million-dollar mill on a working capital of $150,000. When I say a million-dollar mill, I mean it cost that much to build and equip it. The mill is really capable of producing four or five million dollars' worth of duck in a year's time, and with cotton yarn selling at 60 cents a pound, we can not buy yarns when the market is low and store them as the commercial firms do. We have to get an order and go out into the market and buy our yarns for that particular order and pay whatever the market price is.
The CHAIRMAX. Well, you will be fortunate in that respect when the price of yarns commences to tumble.
Mr. MCGLASSON. The price of yarns usually goes down along in April or May or June, and it is the practice of all commercial mills to stock up at that time.
The CHAIRMAN. And you are not able to do it?
The CHAIRMAN. How much does the price of yarn increase after that during the year?
Mr. McGlasson. Last April we could have bought yarns for about 32 cents. Now we are paying between 60 and 70, and the larger part of the cost of a yard of duck is in the yarn and not in the labor that goes into it. You see, one man can attend to three or four looms. each loom turning out an average of 50 yards of duck a day.
The CHAIRMAN. From what manufacturing centers do you receive those yarns ?
Mr. McGLASSON. We buy all our yarns in or near Atlanta.
The CHAIRMAN. Will you know, for instance, on the first day of July what the naval requirements of your mill will be for the next year?
Mr. MOGLASSon. No, sir; we only know from order to order what their requirements are, and the individual orders are comparatively small.
Mr. MAGEE. You sell only to the Government ?
The CHAIRMAN. If the Navy Department would take advantage of the market and buy the yarns when the yarns were low for its requirements and furnish you yarns, you could get along with a very low working capital.
Mr. McGlasson. I hardly think much lower than this $150,000.
The CHAIRMAN. But it would enable the Government to take advantage of the market fluctuations in the commodities in which it was interested.
Mr. MCGLASSON. Yes.
The CHAIRMAN. You would hardly be justified, even if you had $1,000,000 of capital, in buying $1,000,000 worth of yarn next April, if it afterwards developed that the Navy Department did not need $1,000,000 worth of cloth all told during the year. Mr. McGlasson. Well
, if not the Navy Department, then we would have to keep busy elsewhere. Of course, if we got no business at all, we would have the yarns on hand as dead stock.
The CHAIRMAN. Take, for instance, awnings for Government buildings; do you make the duck for those ?
Mr. McGlasson. We could make the duck for those awnings.
Mr. McGLASSON. We have no orders for the duck. We might with proper equipment in the way of sewing machines make the awnings.
The CHAIRMAN. You say you have not come to an understanding yet with the Navy Department as to the price to be paid?
Mr. McGlasson. No, sir; there has been some misunderstanding in that direction and also with regard to the manner of payment of the bills, so that we really do not know where we stand, except that we have made a little profit; that is, we have increased our balance under this fund.
The CHAIRMAN. It is difficult to say then at this time to just what extent this manufacturing plant is going to be a success?
Mr. MeGlasson. It is difficult to say. It will undoubtedly be a success if we can get the orders to keep us running to capacity.
The CHAIRMAN. You would get sufficient orders if you had the right kind of cooperation from the other Government departments.
Mr. McGLASSON. Yes, but we have not had that cooperation except with the Navy Department. We endeavored to get orders from the Shipping Board and have been unsuccessful.
USE OF COTTON DUCK BY SHIPPING BOARD.
The CHAIRMAN. Are they buying duck?
Mr. McGrasson. They are buying duck in this way: They let out a contract for building a ship to a private contractor and the private contractor then buys the duck for the ship, although the Shipping Board itself retains the right to furnish any particular material for the ship and make a suitable allowance. The president of the board issued a circular letter of instruction to all their district managers saying that the board would undertake to furnish duck to the shipbuilders, but it was left optional with the shipbuilder to order his duck through the Shipping Board or buy it in the open market. We have not received any orders, so I presume they are buying in the open market.
The CHAIRMAN. Can you place in the record a schedule showing your prices for various quality duck at the present time?
Mr. McGlasson. I can place in the record a schedule showing the price of such lines of duck as we have actually made.
The CHAIRMAN. Yes; and if you know the wholesale price for the same quality, put that into another column.
Mr. MOGLASSON. Yes.
Cotton duck manufactured and sold by United States Penitentiary, Atlanta, Ga., July 1,
1919, to Mar, 15, 1920,
[Amount invoiced is approximately the market price at time of shipment.)
In addition to the above the mill has on hand, unsold, “firsts” and “seconds," as follows:
668. 10 1,044.12
207 3,979 8, 136
124.97 2,077.88 ! 3, 469. 19
319.18 3, 104.00
140.76 2,238.24 4,230.70
400. 20 3,968. 30
“Seconds" on hand.
13, 115. 12
LEAVENWORTH (KANS.) PENITENTIARY—CONTINUING CONSTRUCTION.
The CHAIRMAN. For continuing construction at the Leavenworth Penitentiary, you are asking $100,000. Are you building another wing at the penitentiary there?
Mr. McGrasson. No, sir; we are repairing and rebuilding the wing that was destroyed by fire last year.
The CHARMAN. I thought we gave you $100,000 for that.
Mr. McGlasson. You did; you gave us a special appropriation of $100,000 for that purpose, but this is to carry on the general construction.
CONSTRUCTION OF ROTUNDA AND ADMINISTRATION BUILDING.
The CHAIRMAN. What do you mean by general construction ?
Mr. McGlasson. The Leavenworth prison has been in course of construction for something like 20 years, and we are approaching the end of it. The wing that was burned was the last of the cell wings to be built; there remain to be constructed a rotunda, on which all of the wings center, and an administration building, which will be to the front of the rotunda.
The CHAIRMAN. How much will be required to complete the construction of the penitentiary?
Mr. McGlasson. The $100,000 we are asking for now is to go on the administration building and rotunda.
The CHAIRMAN. Have they been commenced ?
Mr. McGlasson. We have purchased the structural steel and iron for that work.
Mr. MAGEE. How is the work carried on? Mr. McGlasson. It is carried on by the Government with the use of convict labor.
Mr. MAGEE. You use the services of the inmates?
Mr. McGLASSON. There is no contract work except in rare cases where it is of a nature that the convicts can not do it.
The CHAIRMAN. Can you state how much the rotunda and administration building will cost, all told?
Mr. McGlasson. The administration building is estimated to cost $100,000 and the rotunda $150,000. We have applied $23,000 of last year's appropriation on the administration building and rotunda in the purchase of structural steel and iron.
The CHAIRMAN. Do you contemplate completing this building program by the end of the fiscal year 1922!
Mr. McGlasson. If we get a similar appropriation for the year 1922 I think that would about complete the work.
The CHAIRMAN. Will you expend all of the 1920 appropriation, together with the deficiency of $100,000, during the present year? Mr. McGlasson. The deficiency for the repair of that burned wing? The CHAIRMAN. Yes. Mr. McGlasson. Yes, we will spend all of that.
REPAIR OF CELL WING.
The CHAIRMAN. Will it take all of that to repair that wing? Mr. McGLASSON. It will take a large part of it, but just how much I am unable to say. When the wing was burned we had a firm of architects go down and look it over, and they estimated that it would come pretty close to $200,000 to repair the work.
The CHAIRMAN. That was on the basis that you would hire all the work done?
Mr. McGLASSON. No; that was on the basis of doing the work with convict labor, but they reported afterwards, after we got this $100,000 deficiency appropriation, that they had overestimated the cost. They had a structural steel and iron concern send its engineer there, and his estimate was less than the estimate made by the architects. However, the estimate is indefinite, because much of the damage is still covered up and we can not determine just what steel must be replaced until we get the cement work away from it. Some of the steel members will undoubtedly be so twisted and bent as to be unusable and be beyond repair, so that we will have to buy new beams.
The CHAIRMAN. Will you complete that repair work by the end of the fiscal year?
Mr. McGLASSON. Not by the end of this fiscal year, but we hope to complete it before the end of the fiscal year 1921.
The CHAIRMAN. Do you employ mucho labor outside of convict labor?
Mr. McGlasson. We have only a few civilian foremen to instruct the prisoners.
The CHAIRMAN. What is your unexpended balance of all appropriations?
Mr. McGLASSON. On January 1 we had $148,000 left, of which $44,000 was obligated on outstanding contracts, so that there is about $103,000 or $104,000 left.
The CHAIRMAN. What is your current monthly rate of expenditure ? Mr. McClasson. The rate fluctuates, depending on the building
We can not do much building during the winter months at Leavenworth, because the weather is too severe, but our construction work will open up now that the spring is here, and we will run full blast during the summer.
The CHAIRMAN. Will you be able to expend much more than $48,000 before the end of this fiscal year?
Mr. McGlasson. We had approximately $100,000 left of the two appropriations—the deficiency appropriation and the general appropriation on January 1, and I should say that will all be either expended or obligated by the 1st of July.
The CHAIRMAN. All of your unexpended balance?
The CHAIRMAN. You think, then, that in this construction work you can use all that you are asking for next year?
Mr. McGLASSON. I think so. You see, we had $200,000, and we spent approximately half of it up to the 1st of January.