It sounds here as if the chief engineer himself appreciates that moral influence, but we must look closer. He appreciates its influence on "his countrymen," specifically his "army of workers." And the world of Giorgio's morals is explicitly portrayed in "as if" terms, i.e., as an illusion covering the reality in which men battle for "a more or less large share of booty." Clearly, the chief engineer appreciates Giorgio's morals because they serve to unite and animate his workers, while disavowing them himself. His comment "Poor old chap!" refers ironically to exactly that sad illusion of "universal love and brotherhood" which the chief engineer sees through.

The remainder of his remark can be understood by recalling that Teresa represents the material ambitions of the common man. The hidden meaning is: without Teresa's promise of material betterment (which animates such men as Scarfe), Giorgio's "place" (i.e., philosophy) of purely principled battle will animate no one.