New-York tribune., 1921-10-30

considerable argument the owners ac-
cepted q reduced estimate Of 1870
100000 marks, from which sum pay
ments already made by the government
were to be deducted. The following
items entered into the 11,970,0oo,000
figure:
Paid over in 1919, SOC. 600, 900 NJ.
Paid over in 1920, 3.l70. 060, 900 NJ.
$500, ooo, 600 NJ.
To be voted by Reichstag, 4.70o, 200, 600 M.
Total. 1870. 000,00 NJ.
With this sum the owners undertook
to replace one-third Of Germany's mer-
chant feet at the price Of 1000 marks
per ton. They agreed also to build 80
per cent Of this tonnage in German
yards. They likewise agreed to return
to the government the sum Of 2,000,-
100000 marks out Of the indemnity
should the cost of construction within
FIVE years fall so low as to permit the
reconstruction of more than half of
the former German fleet with the funds
allotted by the government. The Ship
Trustee Bank, limited company, with
capital of 10o,0ooO0o marks, was CIV
en- control Of the shipbuilding program
and the distribution among the vari-
Gus yards of indemnity grants. The
Ship Trustee Bank was formed at
Hamburg, and included representatives
of the government, the Shipowners'
Trustee Company, which had previously
performed the duty of distributing the
government indemnities, and the Ship
owners War Committee. The en-
ployees Of the yards were also given
representation on the directorate Of
the bank.
Germans Conceal Facts
On Business Operations
With the exception Of the foregoing
facts very little is known, and not much
more information is to be obtained on
the arrangement. The Germans see to it
nowadays, much more SO even than in
the past, that the least possible infor-
nation on their business affairs reaches
the outside world, or the German public,
for that matter.
One thing is certain--the agreement
was reached, and the shipowners and
shipbuilders understood they were op-
Grating on virtually unlimited govern
ment credits and were. at liberty to re-
place as much Of their lost tonnage at
public expense as the yards could pro-
duce.
By May Of this year they had COM
mitted themselves to building pro-
gram for the current year Of s,0oo,-
100000 marks. They we're unpleasant
ly surprised, however, to learn that
under the indemnifcation law they
could not spend more than $500, 900, 900
during the fiscal year ending March
81, 1922. Some Of the companies had
already expended more than the share
allotted t. them for the year. The Ger
msn-Australian company, for example,
had already laid out the sum Of 14O,-
100000 marks in expectation Of the
state indemnity, and the Hamburg
! American the Norddeutscher Lloyd and
the Hamburg-South American lines
were in a similar position. AS a re-
suit the yards were compelled to let
up on their work, and even steamers
which were approaching completion and
delivery within few weeks were left
aigh and dry. The number Of en-
4,loyees was reduced and general
trouble was threatened. both Of 9
financial and political nature.
The indemnification law was rail.
roaded through the Reichstag on the
argument that it would help to keep
the yards busy and thus reduce unem.
| ployment. The fact of the matter, how.
ever, is that from the point Of view
of unemployment the German ship
building industry was, from the time
immediately following che revolution
the best situated of ell the industries
Of the country. II not only kept it,
own regular number of employees a,
work, but actually absorbed a con.
siderable number of employees from
other industries. IN 1914, shortly be.
J fore the outbreak ef the war, there