New-York tribune., 1917-07-28
Insurance on Ships Crossing
War Zone Is Raised
~ Per Cent
; to 4 New German
Submarines a Week
Allies Destroy but One
Definite Offensive
Demanded

Washington, July 27.-An announce
ment to-day by the War Risk Insurance
Bureau that, dating from August Is,
government insurance rates for vessels
and cargoes sailing from American
ports for Europe and the Mediterranean
coast of Africa would be increased from
8 per cent to 6h per cent, was accepted
here as official testimony to the effec-
tiveness of German submarines.
1t Is estimated in official circles that
Germany now has 200 submersibles in
active service, and is turning them out
at the rate of three or four week,
while the Allies are snaring or destroy
ing an average Of only one week. The
losses in ships and cargoes is said TO
be costing the Entente nations billions
every month, making necessary the in
crease In insurance rates.
Applies TO United States Ships
The new rate of 6h per cent will
apply also to American bound vessels
from the foreign ports mentioned. 1t
is the first increase since the United
States entered the war and was made
necessary, said the bureaus announce
ment because "the per cent rate is
not adequate for the risks undertaken
through the so-called war zone, as the
bureau has sustained several heavy
| losses"
Unofficial estimates of the submar-
inc strength Of Germany have far ex-
cecded the conservative official figures.
A scientific authority estimates that
at the end of July Germany possessed
seven hundred submarines. This au-
| thority asserted that Germany could
! build 900 submarines a year. At such
rate of construction the Allies would
| have to destroy three U-boats a day to
keep pace with German manufacture.
Tremendous Economic Loss
The further statement was made
! semi-officially to-day that the eco
nomic damage inflicted upon the En-
tente countries and the United States
| by the submarines amounts to billions
each month. The estimate was arrived
at through valuation of the tonnage
destroyed and cargoes lost. There
have been admissions that the loss Of
merchant ships amounts to 100000
/ tons a month.
The value OF ship is said to run
from 81 900 to $4,000 a ton. Taking
the larger figure, the financial loss in
| ships alone would be 81 800, 100000 a
month. The cargoes of the ships de-
stroyed in many instances are worth
more than the ships themselves. Some
officials estimated the damage inflicted
upon Allied, American and neutral
| tonnage available for Allied uses TO
run from s3,OO0,0O0,OO0 to $5,OOO,O00,-
/ 900 q month.
To prevent the increase of submarine
activities and TO discount the addition
/ of the new submarines, the Allied and
American navies must destroy from
! three to four submarines a week. None
of the Allied governments processes to
( be accomplishing this result at the
present time, and none claims that
methods now in use for combating the
I submarines will ever reach that total.
Several Types of U-Boat
| Germany is known to be turning out
/ simultaneously several classes of sub
marines, running from the small type
/ for use in the English Channel and on
! the trade routes between England and
Holland and England and Denmark
| operating from the base at Zeebrugge
/ on the Belgian coast, to the super-sub-
marine Of 1,200 tons and carrying two
/ fve-inch guns. The intermediate
! types, those inficting the largest
amount of damage to enemy shipping,
are of the U-53 class and the mine
! laying submarines. The U-53 type is
/ large, speedy, with extraordinary sea-
] keeping powers, and is employed in the
/ lanes between the United States and
/ Europe, between Russia and England
and In the Mediterranean. They. to-
! gether with the minelaying U-boats,
/ operate from the largest submarine
| bases. such as Kiel.
There is noticeable in naval circles
! here distinct disappointment of hopes
! respecting the invention of instrumen-
talities and methods for successfully
combating the submarine.
The problem is narrowing down to
the necessity of initiating naval
offensive, and it was learned on the
/ highest authority that unofficial press
ure from official sources in the United
| States" had been brought to bear upon
the British government to induce it TO
institute, or rather TO plan for, naval
offensive.