298. There are many enquiries which ought always to be made previous to the commencement of the manufacture of any new article. These chiefly relate to the expense of tools, machinery, raw materials, and all the outgoings necessary for its production; to the extent of demand which is likely to arise; to the time in which the circulating capital will be replaced; and to the quickness or slowness with which the new article will supersede those already in use.
299. The expense of tools and of new machines will be more difficult to ascertain, in proportion as they differ from those already employed; but the variety in constant use in our various manufactories, is such, that few inventions now occur in which considerable resemblance may not be traced to others already constructed. The cost of the raw material is usually less difficult to determine; but cases occasionally arise in which it becomes important to examine whether the supply, at the given price, can be depended upon: for, in the case of a small consumption, the additional demand arising from a factory may produce a considerable temporary rise, though it may ultimately reduce the price.
300. The quant.i.ty of any new article likely to be consumed is a most important subject for the consideration of the projector of a new manufacture. As these pages are not intended for the instruction of the manufacturer, but rather for the purpose of giving a general view of the subject, an ill.u.s.tration of the way in which such questions are regarded by practical men, will, perhaps, be most instructive. The following extract from the evidence given before a Committee of the House of Commons, in the Report on Artizans and Machinery, shews the extent to which articles apparently the most insignificant, are consumed, and the view which the manufacturer takes of them.
The person examined on this occasion was Mr Ostler, a manufacturer of gla.s.s beads and other toys of the same substance, from Birmingham. Several of the articles made by him were placed upon the table, for the inspection of the Committee of the House of Commons, which held its meetings in one of the committee-rooms.
Question. Is there any thing else you have to state upon this subject?
Answer. Gentlemen may consider the articles on the table as extremely insignificant: but perhaps I may surprise them a little, by mentioning the following fact. Eighteen years ago, on my first journey to London, a respectable-looking man, in the city, asked me if I could supply him with dolls" eyes; and I was foolish enough to feel half offended; I thought it derogatory to my new dignity as a manufacturer, to make dolls" eyes. He took me into a room quite as wide, and perhaps twice the length of this, and we had just room to walk between stacks, from the loor to the ceiling, of parts of dolls. He said, "These are only the legs and arms; the trunks are below., But I saw enough to convince me, that he wanted a great many eyes; and, as the article appeared quite in my own line of business, I said I would take an order by way of experiment; and he shewed me several specimens. I copied the order. He ordered various quant.i.ties, and of various sizes and qualities. On returning to the Tavistock Hotel, I found that the order amounted to upwards of 500l. I went into the country, and endeavoured to make them. I had some of the most ingenious gla.s.s toymakers in the kingdom in my service; but when I shewed it to them, they shook their heads, and said they had often seen the article before, but could not make it. I engaged them by presents to use their best exertions; but after trying and wasting a great deal of time for three or four weeks, I was obliged to relinquish the attempt. Soon afterwards I engaged in another branch of business (chandelier furniture), and took no more notice of it. About eighteen months ago I resumed the trinket trade, and then determined to think of the dolls" eyes; and about eight months since, I accidentally met with a poor fellow who had impoverished himself by drinking, and who was dying in a consumption, in a state of great want. I showed him ten sovereigns: and he said he would instruct me in the process.
He was in such a state that he could not bear the effluvia of his own lamp, but though I was very conversant with the manual part of the business, and it related to things I was daily in the habit of seeing, I felt I could do nothing from his description.
(I mention this to show how difficult it is to convey, by description, the mode of working.) He took me into his garret, where the poor fellow had economized to such a degree, that he actually used the entrails and fat of poultry from Leadenhall market to save oil (the price of the article having been lately so much reduced by compet.i.tion at home). In an instant, before I had seen him make three, I felt competent to make a gross; and the difference between his mode and that of my own workmen was so trifling, that I felt the utmost astonishment.
Question. You can now make dolls" eyes?
Answer. I can. As it was eighteen years ago that I received the order I have mentioned, and feeling doubtful of my own recollection, though very strong, and suspecting that it could [not] have been to the amount stated, I last night took the present very reduced price of that article (less than half now of what it was then), and calculating that every child in this country not using a doll till two years old, and throwing it aside at seven, and having a new one annually, I satisfied myself that the eyes alone would produce a circulation of a great many thousand pounds. I mention this merely to shew the importance of trifles; and to a.s.sign one reason, amongst many, for my conviction that nothing but personal communication can enable our manufactures to be transplanted.
301. In many instances it is exceedingly difficult to estimate beforehand the sale of an article, or the effects of a machine; a case, however, occurred during a recent enquiry, which although not quite appropriate as an ill.u.s.tration of probable demand, is highly instructive as to the mode of conducting investigations of this nature. A committee of the House of Commons was appointed to enquire into the tolls proper to be placed on steam-carriages; a question, apparently, of difficult solution, and upon which widely different opinions had been formed, if we may judge by the very different rate of tolls imposed upon such carriages by different "turnpike trusts". The principles on which the committee conducted the enquiry were, that "The only ground on which a fair claim to toll can be made on any public road, is to raise a fund, which, with the strictest economy, shall be just sufficient--first, to repay the expense of its original formation; secondly, to maintain it in good and sufficient repair." They first endeavoured to ascertain, from competent persons, the effect of the atmosphere alone in deteriorating a well-constructed road. The next step was, to determine the proportion in which the road was injured, by the effect of the horses" feet compared with that of the wheels. Mr Macneill, the superintendent, under Mr Telford, of the Holyhead roads, was examined, and proposed to estimate the relative injury, from the comparative quant.i.ties of iron worn off from the shoes of the horses, and from the tire of the wheels. From the data he possessed, respecting the consumption of iron for the tire of the wheels, and for the shoes of the horses, of one of the Birmingham day-coaches, he estimated the wear and tear of roads, arising from the feet of the horses, to be three times as great as that arising from the wheels. Supposing repairs amounting to a hundred pounds to be required on a road travelled over by a fast coach at the rate of ten miles an hour, and the same amount of injury to occur on another road, used only by waggons, moving at the rate of three miles an hour, Mr Macneill divides the injuries in the following proportions:
Injuries arising from; Fast coach; Heavy waggon Atmospheric changes 20 20 Wheels 20 35.5 Horses" feet drawing 60 44.5 Total injury 100 100
Supposing it, therefore, to be ascertained that the wheels of steam carriages do no more injury to roads than other carriages of equal weight travelling with the same velocity, the committee now possessed the means of approximating to a just rate of toll for steam carriages.(1*)
302. As connected with this subject, and as affording most valuable information upon points in which, previous to experiment, widely different opinions have been entertained; the following extract is inserted from Mr Telford"s Report on the State of the Holyhead and Liverpool Roads. The instrument employed for the comparison was invented by Mr Macneill; and the road between London and Shrewsbury was selected for the place of experiment.
The general results, when a waggon weighing 21 cwt was used on different sorts of roads, are as follows:
lbs 1. On well-made pavement, the draught is 33
2. On a broken stone surface, or old flint road 65
3. On a gravel road 147
4. On a broken stone road, upon a rough pavement foundation 46
5. On a broken stone surface, upon a bottoming of concrete, formed of Parker"s cement and gravel 46
The following statement relates to the force required to draw a coach weighing 18 cwt. exclusive of seven pa.s.sengers, up roads of various inclinations:
Inclination; Force required at six miles per hour; Force at eight miles per hour; Force at ten miles per hour
lbs lbs lbs 1 in 20 268 296 318 1 in 26 213 219 225 1 in 30 165 196 200 1 in 40 160 166 172 1 in 600 111 120 128
303. In establishing a new manufactory, the time in which the goods produced can be brought to market and the returns be realized, should be thoroughly considered, as well as the time the new article will take to supersede those already in use. If it is destroyed in using, the new produce will be much more easily introduced. Steel pens readily took the place of quills; and a new form of pen would, if it possessed any advantage, as easily supersede the present one. A new lock, however secure, and however cheap, would not so readily make its way. If less expensive than the old, it would be employed in new work: but old locks would rarely be removed to make way for it; and even if perfectly secure, its advance would be slow.
304. Another element in this question which should not be altogether omitted, is the opposition which the new manufacture may create by its real or apparent injury to other interests, and the probable effect of that opposition. This is not always foreseen; and when antic.i.p.ated is often inaccurately estimated.
On the first establishment of steamboats from London to Margate, the proprietors of the coaches running on that line of road pet.i.tioned the House of Commons against them, as likely to lead to the ruin of the coach proprietors. It was, however, found that the fear was imaginary; and in a very few years, the number of coaches on that road was considerably increased, apparently through the very means which were thought to be adverse to it.
The fear, which is now entertained, that steampower and railroads may drive out of employment a large proportion of the horses at present in use, is probably not less unfounded. On some particular lines such an effect might be produced; but in all probability the number of horses employed in conveying goods and pa.s.sengers to the great lines of railroad, would exceed that which is at present used.
NOTES:
1. One of the results of these enquiries is, that every coach which travels from London to Birmingham distributes about eleven pounds of wrought iron, along with the line of road between the two places.
Chapter 26
On a New System of Manufacturing
305. A most erroneous and unfortunate opinion prevails amongst workmen in many manufacturing countries, that their own interest and that of their employers are at variance. The consequences are that valuable machinery is sometimes neglected, and even privately injured--that new improvements, introduced by the masters, do not receive a fair trial--and that the talents and observations of the workmen are not directed to the improvement of the processes in which they are employed. This error is, perhaps, most prevalent where the establishment of manufactories has been of recent origin, and where the number of persons employed in them is not very large: thus, in some of the Prussian provinces on the Rhine it prevails to a much greater extent than in Lancashire. Perhaps its diminished prevalence in our own manufacturing districts, arises partly from the superior information spread amongst the workmen; and partly from the frequent example of persons, who by good conduct and an attention to the interests of their employers for a series of years, have become foremen, or who have ultimately been admitted into advantageous partnerships. Convinced as I am, from my own observation, that the prosperity and success of the master manufacturer is essential to the welfare of the workman, I am yet compelled to admit that this connection is, in many cases, too remote to be always understood by the latter, and whilst it is perfectly true that workmen, as a cla.s.s, derive advantage from the prosperity of their employers, I do not think that each individual partakes of that advantage exactly in proportion to the extent to which he contributes towards it; nor do I perceive that the resulting advantage is as immediate as it might become under a different system.
306. It would be of great importance, if, in every large establishment the mode of payment could be so arranged, that every person employed should derive advantage from the success of the whole; and that the profits of each individual should advance, as the factory itself produced profit, without the necessity of making any change in the wages. This is by no means easy to effect, particularly amongst that cla.s.s whose daily labour procures for them their daily food. The system which has long been pursued in working the Cornish mines, although not exactly fulfilling these conditions, yet possesses advantages which make it worthy of attention, as having nearly approached towards them, and as tending to render fully effective the faculties of all who are engaged in it. I am the more strongly induced to place before the reader a short sketch of this system, because its similarity to that which I shall afterwards recommend for trial, will perhaps remove some objections to the latter, and may also furnish some valuable hints for conducting any experiment which might be undertaken.
307. In the mines of Cornwall, almost the whole of the operations, both above and below ground, are contracted for. The manner of making the contract is nearly as follows. At the end of every two months, the work which it is proposed to carry on during the next period is marked out. It is of three kinds. 1.
Tutwork, which consists in sinking shafts, driving levels, and making excavations: this is paid for by the fathom in depth, or in length, or by the cubic fathom. 2. Tribute, which is payment for raising and dressing the ore, by means of a certain part of its v alue when rendered merchantable. It is this mode of payment which produces such admirable effects. The miners, who are to be paid in proportion to the richness of the vein, and the quant.i.ty of metal extracted from it, naturally become quicksighted in the discovery of ore, and in estimating its value; and it is their interest to avail themselves of every improvement that can bring it more cheaply to market. 3. Dressing. The "Tributors", who dig and dress the ore, can seldom afford to dress the coa.r.s.er parts of what they raise, at their contract price; this portion, therefore, is again let out to other persons, who agree to dress it at an advanced price.
The lots of ore to be dressed, and the works to be carried on, having been marked out some days before, and having been examined by the men, a kind of auction is held by the captains of the mine, in which each lot is put up, and bid for by different gangs of men. The work is then offered, at a price usually below that bid at the auction, to the lowest bidder, who rarely declines it at the rate proposed. The tribute is a certain sum out of every twenty shillings" worth of ore raised, and may vary from threepence to fourteen or fifteen shillings. The rate of earnings in tribute is very uncertain: if a vein, which was poor when taken, becomes rich, the men earn money rapidly; and instances have occurred in which each miner of a gang has gained a hundred pounds in the two months. These extraordinary cases, are, perhaps, of more advantage to the owners of the mine than even to the men; for whilst the skill and industry of the workmen are greatly stimulated, the owner himself always derives still greater advantage from the improvement of the vein.(1*) This system has been introduced, by Mr Taylor, into the lead mines of Flintshire, into those at Skipton in Yorkshire, and into some of the copper mines of c.u.mberland; and it is desirable that it should become general, because no other mode of payment affords to the workmen a measure of success so directly proportioned to the industry, the integrity, and the talent, which they exert.
308. I shall now present the outline of a system which appears to me to be pregnant with the most important results, both to the cla.s.s of workmen and to the country at large; and which, if acted upon, would, in my opinion, permanently raise the working cla.s.ses, and greatly extend the manufacturing system.
The general principles on which the proposed system is founded, are
1. That a considerable part of the wages received by each person employed should depend on the profits made by the establishment; and,
2. That every person connected with it should derive more advantage from applying any improvement he might discover, to the factory in which he is employed, than he could by any other course.
309. It would be difficult to prevail on the large capitalist to enter upon any system, which would change the division of the profits arising from the employment of his capital in setting skill and labour in action; any alteration, therefore, must be expected rather from the small capitalist, or from the higher cla.s.s of workmen, who combine the two characters; and to these latter cla.s.ses, whose welfare will be first affected, the change is most important. I shall therefore first point out the course to be pursued in making the experiment; and then, taking a particular branch of trade as an ill.u.s.tration, I shall examine the merits and defects of the proposed system as applied to it.
310. Let us suppose, in some large manufacturing town, ten or twelve of the most intelligent and skilful workmen to unite, whose characters for sobriety and steadiness are good, and are well known among their own cla.s.s. Such persons will each possess some small portion of capital; and let them join with one or two others who have raised themselves into the cla.s.s of small master manufacturers, and, therefore possess rather a larger portion of capital. Let these persons, after well considering the subject, agree to establish a manufactory of fire-irons and fenders; and let us suppose that each of the ten workmen can command forty pounds, and each of the small capitalists possesses two hundred pounds: thus they have a capital of L800 with which to commence business; and, for the sake of simplifying, let us further suppose the labour of each of these twelve persons to be worth two pounds a week. One portion of their capital will be expended in procuring the tools necessary for their trade, which we shall take at L400, and this must be considered as their fixed capital.
The remaining L400 must be employed as circulating capital, in purchasing the iron with which their articles are made, in paying the rent of their workshops, and in supporting themselves and their families until some portion of it is replaced by the sale of the goods produced.
311. Now the first question to be settled is, what proportion of the profit should be allowed for the use of capital, and what for skill and labour? It does not seem possible to decide this question by any abstract reasoning: if the capital supplied by each partner is equal, all difficulty will be removed; if otherwise, the proportion must be left to find its level, and will be discovered by experience; and it is probable that it will not fluctuate much. Let us suppose it to be agreed that the capital of L800 shall receive the wages of one workman. At the end of each week every workman is to receive one pound as wages, and one pound is to be divided amongst the owners of the capital.
After a few weeks the returns will begin to come in; and they will soon become nearly uniform. Accurate accounts should be kept of every expense and of all the sales; and at the end of each week the profit should be divided. A certain portion should be laid aside as a reserved fund, another portion for repair of the tools, and the remainder being divided into thirteen parts, one of these parts would be divided amongst the capitalists and one belong to each workman. Thus each man would, in ordinary circ.u.mstances, make up his usual wages of two pounds weekly. If the factory went on prosperously, the wages of the men would increase; if the sales fell off they would be diminished. It is important that every person employed in the establishment, whatever might be the amount paid for his services, whether he act as labourer or porter, as the clerk who keeps the accounts, or as bookkeeper employed for a few hours once a week to superintend them, should receive one half of what his service is worth in fixed salary, the other part varying with the success of the undertaking.
312. In such a factory, of course, division of labour would be introduced: some of the workmen would be constantly employed in forging the fire-irons, others in polishing them, others in piercing and forming the fenders. It would be essential that the time occupied in each process, and also its expense, should be well ascertained; information which would soon be obtained very precisely. Now, if a workman should find a mode of shortening any of the processes, he would confer a benefit on the whole party, even if they received but a small part of the resulting profit.
For the promotion of such discoveries, it would be desirable that those who make them should either receive some reward, to be determined after a sufficient trial by a committee a.s.sembling periodically; or if they be of high importance, that the discoverer should receive one-half, or twothirds, of the profit resulting from them during the next year, or some other determinate period, as might be found expedient. As the advantages of such improvements would be clear gain to the factory, it is obvious that such a share might be allowed to the inventor, that it would be for his interest rather to give the benefit of them to his partners, than to dispose of them in any other way.
313. The result of such arrangements in a factory would be,
1. That every person engaged in it would have a direct interest in its prosperity; since the effect of any success, or falling off, would almost immediately produce a corresponding change in his own weekly receipts.
2. Every person concerned in the factory would have an immediate interest in preventing any waste or mismanagement in all the departments.
3. The talents of all connected with it would be strongly directed to its improvement in every department.
4. None but workmen of high character and qualifications could obtain admission into such establishments; because when any additional hands were required, it would be the common interest of all to admit only the most respectable and skilful; and it would be far less easy to impose upon a dozen workmen than upon the single proprietor of a factory.
5. When any circ.u.mstance produced a glut in the market, more skill would be directed to diminishing the cost of production; and a portion of the time of the men might then be occupied in repairing and improving their tools, for which a reserved fund would pay, thus checking present, and at the same time facilitating future production.