New-York tribune., 1921-10-30
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cans to build ships efficiently and eco
nomically. They are very much i'm
pressed with the ability Of Germany in
this direction. Moreover, they are
quite worried over Germany's deliber-
ate and determined efforts to rebuild
her merchant marine.
Germany Was Competitor
At Outbreak of the War
The outbreak of the war found Ger
many a most serious competitor in
the building and operation Of ships
German competition was growing and
bade fair to maintain this growth. But
while Germany was supposed to have
been eliminated as a competitor in
shipping and shipbuilding by the
Treaty Of Versailles, it is now the
opinion Of both German and British
experts that it has created situation
decidedly favorable to Germany so far
as the resumption of German competi-
tion in the struggle for the worlds
sea trade is concerned.
Germany is demonstrating to-day
that not only will she be able to meet
the provision of the peace treaty for
the delivery of 100000 tons Of shipping
to the Allies annually for the period
of five years embodied in the provi-
sion. but that she will by the end of
the five-year period find herself with
sufficient new ships on hand to enter
lies. The British realize this. With
British yards idle the British have now
perceived the decided foolishness of
insisting on Germany's fulfllment of
her obligation to deliver the tonnage
required of her for the full five-year
period and have abandoned the policy
of not selling any of the ships confis-
Gated from Germany back to the Ger
mans. With this opening of the ship
market to Germany and with building
advantages decidedly in her favor, it
may not be very long before Germany
will regain her former maritime posi-
ton.
a recent estimate gave the cost of
, production in German yards as rs per
cent below that Of any other nation.
Even if this be regarded as an exaggers
alton, the difference between the for
eign and domestic values of the mark
gives Germany tremendous advantage
in foreign trade by receiving payment
in the much better currencies of her
competitors. German shipouilders and
exporters fully realize this and are
preparing to give their 1oreign com
petltors battle far more stubborn and
determined than the race before the
war.
/ 1t would be an exaggeration to say
that Germany has entirely escaped the
general slump in the worlds ship.
building. The last four months have
witnessed slight fall in the industry
here. Thus at Hamburg, Kiel, Bremen.
haven and other places the workers
have been placed on short shifts and
some employees have been discharged
The indications, however, are that this
is but temporary condition, and that
the industry will very soon resume its
recent momentum.
The Treaty of Versailles has created
favorable conditions for the rcsurrec
tion of the German merchant marine
What the Allies have done the German
government has supplemented by tn,
tpd MI ~ xx,1t trk b.
man shipbuilders for the losses they
incurred by the treaty and during the
war. This indemnity scheme followed
the so-called assistance law" adopted
by the Reichstag in November, 1917
BY this law the German government,
undertook to replace merchant ships
lost through enemy action and to stant
the maintenance expenses of ships in
termed in neutral ports. This scheme
however, was upset by the great ris,
in wages that followed the revolution
/ 1t was, therefore, supplemented by an
other law by which the government as
sumed the liability for any increase i,
the cost Of replacing ships arisin,
after October 81, 1918. The owners un
dertook to refund one-third of the IN
demnity sum that was allotted to then
at the end of ten years This law, too
soon proved impractical because of th
continued zigzagging Of the Gernaa,
financial situation, and the government
and shipbuilders thereupen entere,
4 into a voluntary agreement Intended t.
1 cover the shipbuilders' losses durin,
the war.
On the day Of the signing of th
peace treaty the owners estimated thei
war losses at 100000 900 gold mark.
or at about $4,000, 100000 paper marks
They were willing, however, to reduc
this estimate because of the decide
fall in tho cost of production. Afte