New-York tribune., 1920-09-18
Trickety Reported
Delaying German
Payment i'm Ships
Construction of Vessels for
Allies Is Reported To Be
Held Up While Building
for Teutons Is Continr:ed

Germany is finding new methods of
delaying compliance with the peace
terms requiring her to build ships for
the Allied powers as partial repara-
tion for illegal sinkings of merchant
vessels, according to reports received
in shipping circles here.
The treaty terms provided for the
construction and turning over by the
Germans within five years of million
gross tons of ships. After long
period of haggling over the matter the
German government recently an
nounced that the production Of GER
tain shipyards had been earmarked for
delivery to the Reparations Commits
sion and would be turned over as soon
as completed.
One of the principal shipyards in
cluded in this category was the Ham
burg plant Of Blohm & Voss, one Of
the largest in Germany and the one
which has been building the Bismarck,
the largest liner in the world. which,
it is reported, is to So TO the White
Star Line IN reparation for the loss
of the Britannia.
1t has Deen announced from Ger
many, however, that the Blohm & Voss
plant has been closed down indefnite-
", on account Of labor troubles, and
all construction work stopped.
More recent reports, however. state
that, while the large plant is idle, the
small yards near it, which are engaged
ing only such labor troubles as might
be expected from the unsettled state
Of the country and are working the
greater part of the time. 1t is point
ed out as significant that the product
Of these small yards will not have to
be surrendered to the Allies. 1t is also
stated that the skilled workmen who
have been turned away from the
Blohm & Foss plant are getting en-
ployment in the smaller establish
ments and are hastenir- the compile
tion Of the smaller ships for Germany.
The matter is one which will bear
looking into Closely" says The Liver
pool Journal of Commerce. "The Allied
governments should go into the matter
and sift the evidence. If the mems con-
tention is correct, why did not the au-
thorities in Berlin prevent the high
handed action of the directors locking
the men out), with its inev ia bic con-
sequences on the fulflment of the peace
treaty? If the mems contention is a
lie, what are they going to do about
IL? The chances that the whole thing
is trickery are far too great to per-
as q reason for ame,iorating condi-
tions."
a gloomy picture Of shipbuilding
conditions in Germany is drawn by the
German paper, Schitfbau.
The rise in the German exchange
is satisfactory in ITSELF" says this
publication, "but it will soon make
German shipbuilding costs higher than
those of other countries unless wages
are reduced. 1t is true tlu.t there is
the subsidy law, but will the subsidies
be paid and can the state afford them ?
Even if both these questions are
answered in the affirmative, it is very
questionable whether the resulting
artificial maintenance Of construction
costs will be to the interests Of the
community. Small vessels and many
other classes of construction do not
come under the subsidy scheme and,
if they cannot be built at or below the
world-market cost, orders will 20
abroad notap!y TO Holland and Den
mark"
But the subsidy scheme, according to
Schifbau. is impracticable. A cargo YES
sci of 1900 gross tons, it is stated, would
now require subsidy Of at least so,
100000 marks (normally $12,5O0 ,o0O).
On this basis. to build a merchant
feet Of 2,500,000 tons gross register
which, it is declared. is the minimum
if the German mercantile marine is
again TO be factor in the world
would require a subsidy of 10000 oo0,-
600 marks (normally $780, 900, ,O00)
which is said TO be out of the question
Thus for German shpbuilding,'
says the paper, "the present costs of
production constitutes not a crisis but
a catastrophe. While conditions abroad
are bad enough, and, indeed, critical in
some countries, the position of ship
building in Germany is untenable
Suicidal competition must be avoided
and in place OF empty talk concerning
price reductions and the abolition OF
the eight hour day, effective concerted
action must be taken to reduce costs