FUTURE OF GERMAN SHIPPING

Dominion, Volume 12, Issue 46, 19 November 1918, Page 8

FUTURE OF GERMAN SHIPPING

ENEMY'S DIFFICULTIES REVIEWED

THE SEAMEN'S BOYCOTT

(Note.—This article, ..by ..an English ' ■'. writer, was written Before the arjnistiee was signed, and'necessarily ■" does; not envisage the new factors created by the. revolution in Ger- '; .-many. The enemy's plans, however, ■ are of interest.) ;'• Those in Germany who are concerned .with the.future of'their merchant shipping talk and act as if that future defended on themselves., ■ It depends, of bourse, on the Allies and their peoples. ,A year ago the present writer called atja'ntion.'to' the probable importance- in this connection of tHe seamen's boycott movement, then recently started. That movement has now become "very great; yet in the course of the year hardly an allusion to it has been allowed to appear in the German Press, and it is sale to 6ay ;that the German people as a whole are in absolute ignorance of what the future holds. No 'doubt some of their commercial circles think a good deal about it; but they are ■careful to say. nothing. •It may bo of interest to describe briefly what is being done in Germany, and what are the difficulties 'Germany* will have to face. It is the fashion of the moment in that country to ueclare that Ludehdorff's sword wilt cut all knots; but whatever the power of the sword may or may not be, it ends at high-water mark. Tho Germai? Shipping Subsidies Bill became law in November, 1917. Under it, a*' is well known, the Imperial Governnv.nt is to make non-repayable'grants to shipowners to replace ships lost or seriously damaged, the giant to be the ;value of the ship as on July 31, 1914, with an addition il grant'(a much bigger item) on a sliding scale to meet part of the increased cost of construction, ranging for. speedy construction up to 80 per cent, of tho increase. The preamble of tho law assumed that about two-fifths of the German merchant navy had been lost. It is certain that the loss now_ is over .one-half. This was the proportion stated in (he Budget Committee of, (he Eeichstag at the beginning of May; and exact figures have been given in a work on "German Shipping Before, During, and After the War," issued by the /"Nordisches Koionial Kontor," Hamburg. Out of 5,429,296 gross tons on the register in January, 1914,'2,900,000 have been lost, well over a half; and if all ships (it is stated) in neutral ports be considered lost, it will amount to two-thirds. Sinco this was written Peru has taken over six large German ships; but there'is still the important fleet laid up in Chile (sev-enty-five ships) and Argentina not yet dealt with. The immediate effect of the new law 1 has been to stimulate activity in new shipbuilding yards, or -rather 1 companies, in Germany; but this ,'is.not the same thing as the actual provision of ships. ;, ,i ' Capital Invested.

'.-The iron and coal industries now possess : considerable interests in shipbuilding concerns, and there is no lack of 'money for the yards, anyhow for the ;»ig-' undertakings; lief ore the war the -whole-..capital..invested in shipbuilding, .exclusive: of the large private yards of Krupps and Schichau, . was under JI.BO million (Jt'4,000,000); during the war M.35 million of < new capital was added to the /end-of .1917. Of trio 'fifteen- principal- ; existing concerns, five only, have npt increased'their capital -during the war. Blohrn-and Voss (Hamburg) have inchased theirs from M.12 to. 20 .million; the -Atlas-Werke U'remen) from B to 7 i million; the Howait Werke Ujftel) from .4.1 to million; the Joh. /Tscklenborg Coyi (Geeste-munde) and the Vereinigte Bu'gsier urid Frachtshiffs fahrt. Coy., each lijoni 4 to 6 million; the Neptuu.(Rostock) frorii 2.2 to 3 million; the Stettiner Oderwerke from 1.75 to 2.0 million; The Keiharstieg concern (Hamburg) has ;taken, oyer. several small yards., and acquired tho .whole' ' Elbe .front-, -age'"'-of/ Klein .Grasbrok, increasing its capital from M'.o to 6 millions; J. ■Frericlis and Co. (Bihswarden) have taken .over G. H. Thyen (Brake) and acquired n new site of 100,000 sq. met., increasing their capital from 2.5 to 1.5 millions; .Koch Brothers (Ltibeck) have increased'their capital .6 to 3.6 million, and are to build a new yard at the mouth of the Traye. Blohrn and Voss are taking over the yard of Jansen and Schmilinsky, which latter company is raising its capital from .3 to 3 millions, 'and is to build a new yard;' the Elbe Shipbuilding Co- (Hamburg) •is taking over the Nordenverft, with a joint capital of 2.5 millions; Hie Eiderwerft (Tonnig) is being reconstituted with a capital 1.75 million as the Hansawerft; tho Securitas Sprerig; Stoffwerke Co; is to build a yard at Hamburg, arid the Gelsenkirchen Mining Co. a large j'ara at Fieusburg.

At least three new companies were projected or formed before the Shipping Bill passed, the big Pommern AVerft (Stettin), capital ALIO millions, to build standardised freighters; the E. Eitzlaf (Stettin) to specialise in 8000-ton freighters; and Ballin's six-slip Ilamburgewen-t (Hamburg), capital 31.1 million. This spring there . have been announced tho Deutsche Schiffswerft (Wismar), capital M.B millions wjth a lease of 200,00u sq, , met.,,from the town, to build ships up to 12,000 tons; the Triton-AVerke (Lubeck), capital -1 millions; the Hamburger Elbewerft, capital 4.5 millions, to build•' standardised freighters up to 5000. tons/, the. Schiffswerft Oldenburg, capital 5 millions; unumber of smaller companies; and, lasliy, the 'large new yard at I'inkenwarde." (Hnmburg), formed by the Gute HofTnung smelting works, the A.E.G.,' and the Hamburg-Amerika under. Ballin's presidency, with a capital of M.lO, millions. The list is, of course, not exhaustive; other foundations ,are projected at Lubeck, Harburg, Emden, and elsewhere, of which the writer has not particulars. At Lubeck in particular the Burgorschalt have recently voted sums amounting to 11.1,650,000 for new harbour works and allied undertaking!*, in addition to M.4 millions already voted ) in 1915 and 1910; and two othor large I yards are projected at the mouih of tho Trave in addition to the Koeb undertaking. _ The activity at Lubeck and Stettin is, of course, connected with fche present German domination of the .Baltic... • , • . Paper Projections, , Alany of these' projects naturally exist on paper only, and many of the'extensions of capitol merely denote the acquisition of smaller existing concerns, whose capacity, however,, may bo increased in stronger hands. ' As, given favourable conditions, a new yard would require two' years before output commenced, this activity is important for.the future rather than for the present. In addition to the extensions of' shipbuilding yards projected or in progress", a number of other steps in connection with the merchant, mavy have .recently been taken in Gennnny. In.'January the already. established Shipping Loan Bank in Hamburg was followed by the formation of another in Berlin, with a capital of ALIO million, its object being to encourage German shipping by granting loans against mortgage of ships or shares in ships, only ships on the German shipping register to be handled; the largest shareholder is the Dresdner .Bank, while others are the Berlin Trading Company, the Notional Bank of Prussia, and several insurance companies. Tn Alarch /all the most influential shipping and freight agents formed an association, to assist its members to procure the necessary tonnage both at home and abroad. Herr Hullin has a seat on the board of the new oil syndicate, to further bis plan for building merchant ships run by oil motors. The Imperial Treasury has been considering the propject of a marine insurance monopoly! and proposals have been brought forward for a German institution to take the place of Lloyds; some shipowners, however, oppose both these projects, on tho ground that they are sure to provoke reprisals. In .this connection may be noticed Iho Deutsche Bergungs-und Verwertungsgesells'chaft, a salvage 'company formed in Berlin by some of the leading marine insurance companies under Government auspices, with a provisional capi- ' tnl of Af.O million, io raise ships sunk ' in the North Sea and''elsewhere—a project on which Britain will presumably have something to say. - , - , The Prospects,

What chance now has.Germany, of getting ffie shippjng- 'she rehires, supposing

she were let alone? If the war were to end this year, and she recovered the ships in Chile, she. would still have to replace some 3,01)0,000 gross tons. Ultimately, of course, it could be done; but certainly not soon. In the last two years before the war the German yards claim- to have turnel out about 350,000 gross tons each year; and numerous calculations have been made as to what Germany could, turn out after the war with her extended yards working at full power. In September, 1917, the War Committee of German shipping firms estimated the total at 500,000 gross -tons. On November 17 a detailed calculation in tho '"Hansa" arrived at 500,000 gross tons. In June, 1918, tho Dutch trade organ, "In-en Uitvocr," taking tho recent projects' into accounl, -estimated 600,000 gross tons. It would thus take some years, to. make up three million 'tons. Of course there is the shipping on the stocks, including several giant liners; tho -otal of this in June was said to be 950,000 tons for all the principal shipping companies. But under r\e military veto construction is practically at n standstill. AH vessels above a certain aiz2 being built are well known; only some seven large vessels have been put on'the stocks since. August, 1910, while all the ships then building are still building. Unless-, 6iriall Baltic freighters,' nothing seems to have been launched. The reason is simple; Germany has neither the labour nor the iron to do everything at once. Yet though the' construction of liners and freighters has been stopped, all the important shipyards continuoyto pay reasonable and sometimes good dividends. All the N evidence available points to the obvious solution being the right one; work on merchant v ships lias been''held up because private yards have . been fully engaged building submarines or parts of submarines to supplement the Government yards. The sbuiarine campaign has not only destroyed a large number of neutraj vessels whose use as carriers might, under a reasonable policy, have been available for Germany after the war; it has prevented Germany getting on with the reconstruction of her own mercantile marine. AVhen the war ends, the German merchant n/ivy will yet be to rebuild. It may be pointed out, too, that the want of labour also affects, the now yards. The furthest advance ;is said to be BallinV Hamburgerwerft; and its rate of progiess lias been slow. The German merchant fleet, then, after the war-will certainly for some time be far smaller than in 191-1. Can-Ger-many supplement 'it from neutral ■sources? Hardly. '• The "War Committee of German shipping firms has pointed out that purchase from neutrals, even if they would sell, would be prohibitive. A freighter of, 6000 tons cost M'.l million to build in 1814; in 1917 in the Baltic it was worth M.S million. .Under flic Shipping Law the Empire would have to pay, for such a replacement, M.l million plus 80 per cent, of the increase of 5 million, i.e., M.5 million altogether, and the depreciation of the mark would bring it. up to nearer 10 million, Again,-who would sell? Sweden .is .building hard, tuft'that is because she means to make a strong merchant .fleet; for herself. Norway has ' 1:6 .replace her own ' heavy losses; and as 1600 Norwegian sailors have been murdered by German submarines, Germany is none too popular there. Possibly Germany may get the use of a few ships from 'Holland. For Holland has to obtain steel,for shipbuilding from Germany;, and the : German exporters make the Dutch shipowner sign a con- ( tract that, if Germnir steel be used in' a ship, the shipowner for three years nfteri.fleaco shall not take freight from or charter the ship to the Allies, but shall use her only for .Dutch trade;- if there is none to be had she must sail for Germany. ,

One consideration, and a.very, important one, remains. Whatever prepnrations Germany makes for'building lifter the war, she 'may be short of iron. She 'user! to import less re-exports, seven million tons a year, against, a home production of about 29 million j she cannot get more from Sweden than she does; stocks on hand,' the' "Hansa" says, are almost exhausted, and she is-livine from hand to month; and after-peace the'reconstruction of the rpilwnys and of muchindustrial plant, will be a vital Ncccssih'. Her need of- iron for ev°ry purpose. .wiH he so great that some. Gorman authorities doubt If enough•,«"! no.'S'bly. .: be available for the greit "''i'lrmiMinp programme contemplated. Tins helps'to explain the d»n>«'nrl for' th» ' annexation of T.nngwy and' Briev end' ; (lie thrust into the iron-producing Donetz .legion in South Russia.

Other, Difficulties. So Tar, what has been considered is what may bo called the constructional side of the question of the restoration of the German mercantile marine.' But tli'o

constructional difficulties are only the beginning of tho matter. There is trouble,in Germany about tonnago space.. It being taken for granted that there •will not be enough shipping after the war for necessary German, imports (assuming Germany can get many imports by sea at all), the question of dealing with imports has become a burning'one. It is enough to say here that the Government, has proposed to control twothirds of the available toiyiage, to be allotted to imports in order of urgency, by means of a company to be formed called the Cargo Space Allotment Company, which is to be controlled by an Imperial Commissioner acting on behaif of tho Economic Office. The small shipping companies support tho Government; Hamburg end'the big interests are fighting against it tooth and nail. They want free traffic, and the War Committeo of German shipping firms has' apparently refused definitely to accept) tho Government plan; the last news is that the Imperial Economy Office- has withdrawn its scheme, and is negotiating afresh with the Committeo over a new plan, which will closely restrict Government supervision. A pretty quarrel; but as the Government dare not offend the big interests for pecuniary reasons, Hamburg may get its way. '. But Hamburg .shipowners are also troubled over external difficulties. Whatever some sections of Germany may think of an economic ' aftenvar, Hamburg is frankly terrified at the prospect. All traffic might seek Copenhagen and Rotterdam", and German shipping be ruined for ever. At the Hamburg Conference in Juno Herr Ballin threw the blame on Mittcl Europa; Germans could not have a closed Alittel Europa and an open sea; and the conference became a demonstration against Berlin's war economy and in favour of free commerce. But free commerce, again, may in practice not be all that it seems. At the Hamburg Shipping Conference last November Herr Hulderniann (Hainbnrg-Amerika) put bis finger on a, Very weak spot; many of the former German interests and connections in oversea countries had been destroyed, and there would bo nothing to help Jtheir shipping at the other end unless they recovered "freedom of movement in all enemy countries." The measure of Hamburg's trouble may be seen in the extraordinary peace terms demanded by the :Hamburg Chamber of Commerce at an important meeting of the National Liberal Provincial Association on February 23; they included security . for Germany's world pre-eminence, restoration of the colonics, unrestricted liberty of movement for Gentian shipping, commercial treaties with an unconditional most-fnvoured-natioc clause which could not be prejudiced by "customs alliances" (i.e., valid notwithstanding Alittel Europa), suppression of all schemes for an economic war, provision of raw materials from foreign countries, and protection of all German claims abroad. How all this was to be achieved was as usual not stated;-but the point is, that if'this is the kind of thing neeesR ? irv to restore German shipping after the'war, then the future of German shipping is likely.to bp a dubious one.

The Seamen's Boycott. But, after all, supposing Hamburg got freedom for its shipping and its imports, it would only get it as far as Governments could- give it; and that has limits. I'or whatever any Government may or may not do, this will not. afreet the important mutter of what tlio seamen and (lockers arc actually going to <l(i; and what has driven them to take action is not Mitlcl Europa or Customs alliiintfes, but the atrocities of tho German suftmarines. Germans have broken the old unwritten law uf the, sea that you shall rescue men in peril. Noorganised body has broken it'before, except the Barbary pirates, and no one has-broken it with impunity; and the men in Britain who use the sea have taken the matter into their own hands |o punisli Germany for the murder of 15,000 British • scanien. The movement

was started by the Seamen s and lurcmen's Union, under the-lead ot Mr. Havclock Wilson;'in September, 1917, the Merchant Seamen's League was loimdcd, and by June 250,000 seamen and hromen and 300,000 dockers in Britain wero pledged to the league's policy, which, as | declared at the beginning, was to "get among the world's dockers and call on them to keep German ships m then- owi, harbours. ]\'u British ship is. _to carry goods tu Germany or be taken into n German port; no docker is to unload a German ship if it enters a British harbour. Germans are also to lw boycotted at sea. No seaman is to sail with u German ; and as this part of the programme is international, it means that no German seamen, beyond those required to man their own scanty fleet, will get work anywhere. They will join the starving German unemployed. The period ot We boycott is now (July) live years and eight months, and it grows with each fresh crime. The movement has spread far beyond Britain. Mr. Wilson was elected president of tho International Seamen s Congress which met in London in August, 1917, and again at Copenhagen m June, 1918. In 1917 the sailors of Britain, 'I'rai'-ce, Italv, Hussia, Belgium, Norway, Sweden, Denmark, and Holland resolved, if necessary, to refuse to sail with Germans after the war, and meanwhile to withdraw from the International transport Federation, which includes Germans, and form a separate Allied and. neutral organisation. It remains to bs seen if the-seamen and dockers of otFjar countries will come fully into line with the British, but at the paco the movement is growing the British alone will be in a position to punish Germany considerably, and those who know British merchant seamen say that no-body or men has ever been in more deadly earnest. Professor I'orster warned his countrymen last year that "they would be helpless against an unofficial boycott,. and obviouslv so. What peace treaty, if it came 'to. that, could compel a skipper to engage a German or a docker, to unload a German shin? It is understood that the boycott may be mitigated or lifted if and when Germany shows repentance for her conduct 'nt sea and offers reparation. And no one has ever stood a boycott *ong.