Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-07-24
LOST BY THE ENGLISH
Biz Railway Contract Obtain
ed by the Germans. /.
MATTER OF FINANCING
Many Protests Raised That British
Firms Were Not Allowed to
Compete in Bidding.

The unrest among the British Industrial
classes and the slow procAss Of arriving
at a satisfactory settlement OF the vexed
question of wages has helped 10 divert
public attention from another phase or
commercial opportunism--the policy pur-
sued by German firms TO capture con-
tracts IN this country. So far tho VENT
lation OF this grievance OF British bust
ness men has been confined to CORES
spondence in the papers. These letters
have dealt with the giving by British
corpor ations to German manufacturers OF
vast contracts for which British arms
are not even allowed TO compete. and the
subject is OF Immense Importance to the
welfare OF the country.
John Bull Is first and foremost. a shop
keeper. and II lis clear that sustained
attack upon his trade ds no less impor-
tant IL il be brought 10 successful is
sue by intrigue than IL IL were the out
come OF a bloody war.
London Brighton Electrifcatton.
The specific case which has called forth
great outcry Is that OF the London-Brigh-
ton railway. which Is about to electrtfy
it's line between London and Brighton.
and, without inviting British firms to ten
der, proposes TO give the contract valued
at upward OF two million pounds, TO the
Allgemeine Electricians Gesel.schaft Or
Berlin. a corporation that. starting life IN
1887 with two workmen. empioys eotfH"
today. and has capital OF Eo.Ws9N'.
with coGnGUO debentures and the ,fIl-
limited support of three great German
banks.
This company electrified a small part
OF the Brighton line between London
bridge. Victoria and the Crystal Palace
at a cost Of s150.ooo. and is believed to
have taken deferred payment. The cor
respondence, to which the company has
vouchsafed hut brief and non-commit-
tai reply. suggested that II the Germans
can obtain this new contract they VIII ne
able to keep British electrical engineer
ing firms not only out OF the continent
and out OF the British overseas domin-
lions. but out OF the service OF British
lines, like the London and Northwest
ern. the London and Southwestern. ana
others, that are known TO be organizing
for the electrification OF part. at least,
OF their systems.
II is further stated that although the
Brighton company professed that all ma
terial used has been made In England.
with certain exceptions. these exceptions
amount to more than appeared on the
surface. Parliament will doubtless be in
voked, and although railway interests
are sedulously protected there. IL may be
that the patent act OF Lloyd George.
which appears to have been overlooked.
collation. clauses. for some OF the patents
used In the earlier classification are al
legged to have been manufactured abroad.
A Question Of Financing.
why Coz. the French. German and Bel
gian mauufacturinS firms compets with
British, and ~ do they get 90 many
contracts 3~ay from British 0rmsf II
is not peoa - they work bet.sr or cheap
er, but because they ~ better financed.
For all Englishmen1 ~ sking business.
and they claim to be the worlds bankers.
they have no institutions that exist
prise. Certain Berlin. Brussels and even
Paris banks are always ready to finance
a sound commercial venture on two con-
ditions-first. that the security be unques-
tionable: second. thAS every article re-
quired for the contract be manufactured
in France, or Germany, or Belgium, as
the case may be. Each OF these condi-
tions is sine qua non, and although
London. the richest city In the world,
turns millions OF pounds worth OF work
away year by year, IL is eagerly snapped
UP by one of the competing capitals. ana
the British manufacturer sees the zone
of his activity remorselessly diminished
by his own countrymen. Who in public
and in their individual capacity profess
unbounded patriotism.
Manchester today is far more accessible
than London to the British manufacture
who wishes to find the money for a big
scheme, and many keen city men would
be delighted to see Manchester or Biz
mingham take up the enormous business
OF commercial banking that the capital
has chosen to disregard. for the develop.
ment Of the British banking system Is in
evitable II BritisEers are to face the In
sidious competition OF the German and
the Belgian The competition Is the more
dangerous because. although every effort
is made in private TO shut British COM
petitors out altogether. the limits OF
strict accuracy are strained in order To
suggest that the German contracts are
being carried out either by British firms
or with goods of British manufacture.
What does the German want with con-
tracts that are to be carried by British
houses? l.. III. MOORE.