GERMAN ENTERPRISE

Evening Post, Volume CI, Issue 62, 14 March 1921, Page 7

GERMAN ENTERPRISE

MARKED ACTIVITY.

(FROM OUR OWN CORRESPONDENT.)

LONDON, 13th January,

Only the other day Sir A. Booth (Chairman of the Cuniird Company) said r "Germany is preparing to return to her -old place in the chipping world." Striking evidence of, the accuracy of this forecast is afforded by the news from Berlin that at yesterday's special meeting there of the Hamburg-Amerika Line the decision v/ae arrived at to increase immediately the oapital by a sum up to 100 million marks (some £400,000) in 6 por cent, cumulative preference chares. It is the intention, as occasion arises to exchange a certain amount of this new stock with other companies and 20,000,000 marks' worth (£80,000) are tx^be thus exchanged with the Hamburg South America Company. This means that by a gradual process of trustification, similar to that already in operation in other great industries, it is hoped to enable, the German mercantile marine to present a united front in. challenging the world for the resumption of its old. position. In introducing the proposal, the ohairman referred to the danger of foreign interests becoming predominant and to incorporation of German shipping companies into a trust, and he went on to saj; that traffic in the harbour of Hamburg had now men to nearly half of its peace proportion, although the harbour had practically no tonnage of ite own. That fact showed how many foreign chipping companies with their representatives had gone to Hamburg. These companies naturally coveted German establishment, and would try to gain advantages for themselves by 1 buying controlling interests in that or this company. Reference was* made to the difficulty of running the business profitably owing to the decline in the mark and to development in hitherto untried directions, and then the Chairman discussed the agreement with the Harriraan Company, of the United States, ,-and said that so far the collaboration kad been very satisfactory. Regular weekly cargo steamers were now coming, in, and presently the first passenger ship .would arrive from Now York. All this required much more money, but how much would depend on the negotiations with the Imperial Government concerning subsidies and indemnification. A Berlin message reports that 67 shipping companies, including 22 British, have established themselves in Hamburg, and that the port- is too small in its present stato for the new arrangements contemplated by these concerns. AFRICAN AGREEMENT. The Berlin correspondent of the Daily .Chronicle mentions that another Hamburg company—the German East African Line —is doubling its capital. It is going to work hand-in-hand with the Woermann Line, and it is also negotiating with the Hamburg-Amerika and North German Lloyd for establishing "close connections." Deprived of the whole of its tonnage at the ond of the war, the East African Company already has launched one cargo boat, and the direotors are "looking forward to the- future with complete confidence," adding that they will m the next few months have several passenger steamers afloat, . QUICK AND CfiEAP LABOUR. "It was not to be expected, nor would it indood be desirable," observes the Chronicle, "that Germany should be content to exist without a mercantile marine. But her efforts sfiow that Sir A. Booth's statements about her renewed activities were to the point. It muat not be forgotten that the German shipowners at thi« moment have an Advantage,, just where our own are most severely handicapped, in the employment of labour that is quick as well as relatively cheap. Our labour is dear, but, what is far worse, it is slow." CAPITAL FROM GERMAN FIRM. It is announced by cable from Buenos Ayres that an Argentine company, with a capital Qf 50,000,000 pesos (£10,000,000 at par'of exchange) is being formed with the object of establishing shipbuilding yards at the port of Carmen.de Platagones and there constructing vessels for trade with Europe. It is stated that a local German firm will provide a. part of the capital.