SHIPPING INDUSTRY

Evening Post, Volume CVI, Issue 121, 28 November 1928, Page 14

SHIPPING INDUSTRY

THE GERMAN RECOVERY (From "The Post's" Representative.) LONDON, 27th September. A special article in tho "Financial Times" recounts the growing prosperity of the German shipping industry. Opportunism during the period of the post-war slump iv the shipbuilding (says the writer of the article), conservative finance in tho early stages of recovery, and enterprise in the search for world markets have rehabilitated tho structure of German shipping. Prior to the war the German commercial fleet ranked second in the world's list, following upon the heels of England. The confiscation of her ships in . 1919 saw Germany reduced to the thirteenth place on the record. Sinco then ships have been bought and built to such purpose that her fleet is only exceeded by that of England, America, and Japan. An indication ,of the magnitude of this recovery may be gained when it is understood that, including the most recent efforts in the shipbuilding yards, Germany's merchant' marine now stands at 80 per cent, of its pre-war strength. For years past the records of the companies have shown an increasing profit, and, what is more indicative of vigorous administration, the overhead costs have steadily diminished. . As a necessary consequence tho net profits have been continuously rising. The figures of the German companies. will emerge.more satisfactorily from a comparison with any other fleets for 1927. The aggregate share capital ranking for dividend in 1927 was 350,225;000 marks, and upon this amount the dividends paid totalled "8,445,750 marks.

AN ENVIABLE POSITION. The capital showed an increase of 70 per cnt. over . 926, while the dividend payment exceeded that of the previous year by more than 100 per cent. On a greatly augmented capital the divi. dend, taking all companies on.average, showed an increase over the previous year of 23 per cent. Tho average pro-, fit per ton on the four leading German lines is 13.35 marks for 1927, and, translating into Germany currency for comparison, the average for British companies during the same period was 12.23 marks. Tho progress made in shipbuilding has placed Germany in an enviable position with regard to the quantity of new tonnage. The percentage of her vessels under five years old is 27 per cent., as against 22.7 per' cent, in the British fleet and. less in the case of France and Holland. Having regard to this, it is interesting to note that the book value of the German fleet is written down at a smaller amount per gross register ton than that of most other fleets. As is natural, the rate of depreciation on the German vessels is reckoned at a reduced rate. •