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At the workshops of the Hubai Railway, a purely Chinese con- cern, it was interesting to find the shops with almost entirely British equipment. These shops are likely to be much increased, but are at present held up by the agricultural depression. The Peiping (Peking)-Mukden shops at Tongsha show British influence in their equipment. Most of the supplies for these, and in fact all railway workshops, are bought by public tender, and of course, competition is keen, but this is a market where expert engineers can be found, to whom an expert salesman can talk, and if he has a good thing, can sell it on merit.
170. In addition to the big undertakings mentioned, there are several large and many small factories in most of the large towns doing considerable business in the smaller branches of metal manu- facture. An example of a large one is the General Forge Company of Shanghai, who make nails, rivets and black bolts with up-to- date mass production plant. They buy chiefly Belgian steel on price and do a big trade converting it to their products, which sell readily. Their labour costs are low, and under European super- vision make a good showing. Coolies receive 5 cents an hour, smiths 15 cents and tool setters 18 cents. They work 144 hours to the fortnight, overtime is paid for at 25 per cent. increase, and there is also a production bonus payable half-yearly averaging 20 per cent.
As an example of a small general engineering works the following is interesting. At Canton the firm of Hip Tung Wo makes oil engines of many sizes and types which are sold for small vessels for river work. They sell for 100 dollars a horse-power, and though rather crude, are reported to run quite well. Wages average 1 dollar 70 cents per day.*
171. Foundries, hardware, and brassware shops, and small machinery shops abound. These employ a great deal of apprentice labour and are extremely primitive. Their demand is for very cheap machinery which Great Britain is hardly able to supply. Much of it is of Chinese or Japanese make and Germany also does well in cheap standard lines of lathes and shapers, and America with cheap drills. The requirements of these small shops form a steady sales line, and it is worth considering producing suitable cheap machinery to cope with this demand. Agents or merchants could help by giving details of price and type necessary. Consignment would be essential.
In this group may be considered enamelled-ware manufacturing and wood-working. There are a number of firms engaged in the former in most of the large towns. They usually start as small foreman-run workshops and gradually extend to factories. As a result they are very ramshackle but manage to turn out a readily saleable article and even to export it. As this trade is likely to
* See note to paragraph 189.
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grow, and some of the factories will be brought up-to-date, openings for supply of machinery and dies should be watched for.
Wood-working shops are numerous but generally small. At present they use mostly tools of local make, but imported tools are growing in favour. At present, the chief users of modern wood-working machinery are the dockyards, arsenals, and railway workshops.
CEMENT WORKS, &c.
172. In view of the great building activity there is likely to be a considerable increase in trades providing building materials, such as brick making, stone breaking and cement manufacturing. The Chinese industrialists in the latter business are of good repute, and granting credit to them is considered safe. They are usually well staffed and critical of the plant they buy. It must not be forgotten that this large industry has many requirements for sub- sidiary plant, but to expert buyers correspondence selling is no use, close personal touch and expert argument are essential. The main supplies of the cement plants have been Danish, but German plant is also being installed. Many new plants in various parts of China are under consideration.
AGRICULTURAL PRODUCT TREATMENT.
173. The next large group of machinery-using industries are those connected with the working up of agricultural products. The most important are flour mills, which are increasing fast in number and in importance, particularly in Manchuria where there are said to be 50 mills using modern plants, of which 30 are in the Harbin district, 12 at other points along the Chinese Eastern Railway, and 5 in the Japanese Railway Zone. In Shanghai there are 23 mills, some of very large size, and altogether the whole of China has about 100 mills. The average output is 1,000 bags of 49 lb. in 24 hours.
So far, the United States has done most of the equipment, an up-to-date estimate being 85 per cent. United States, 10 per cent. British, and 5 per cent. Swiss machinery. British milling practice differs from American, and in view of the prevalence of American mills British makers, when quoting, are constantly asked to change their practice to American lines. This they, quite wisely, are un- willing to do. If some good examples of British mills can be used There to educate the Chinese to our practice, it will be better. are signs of a less American outlook and our prospects seem brighter. Government inspection is concerning itself with the problem of wheat and flour quality, and the advantages of our British methods will be emphasised by this.
174. In the south, rice mills exist in several large towns and have important equipments. The demand for these is likely to be a growing one, as they appear to be profitable.
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