Statement by Sir Eric Geddes

First Lord of the British Admiralty

Sir Eric Geddes in a speech before the House of Commons on March 20, 1918, for the first time revealed the total shipping losses of Great Britain and the other Allies and neutrals from the beginning of the war up to Jan. 1, 1918. His summary was followed next day by a statement from the Admiralty Office giving the figures in fuller detail. This was made public simultaneously at London and Washington. The essential portions of both utterances are presented below. Sir Eric Geddes said:

The world's tonnage from the commencement of the war until Dec. 31, 1917, exclusive of enemy-owned tonnage, has fallen by a net figure of, roughly, 2,500,000 gross tons. This is out of 33,000,000 estimated allied and neutral ocean-going tonnage, which is arrived at after deducting small craft, river and estuary craft, and a considerable amount of lake tonnage, tugs, &c., so that with a net loss of 2,500,000 tons we, the allied and neutral world, have suffered about 8 per cent. reduction in ocean-going tonnage of the world, excluding enemy countries. The total world's tonnage, exclusive of enemy tonnage, is 42,000,000, and the deduction is made after careful consideration and investigation. The percentage of net loss in British tonnage alone is higher than this, and reaches 20 per cent. for British tonnage, the more favorable allied and neutral tonnage percentage being, of course, due largely to a credit brought in by the United States of interned German ships.

The main submarine attack is upon us. It was to starve these islands that the enemy instituted this form of warfare. In 1915-16 the output of new tonnage was very low—it was lowest in 1916. In fact, before the intense submarine warfare commenced we were over 1,300,000 tons to the bad from all causes since the beginning of the war. Then our shipping has been in the war zone to a far greater extent and far longer than has that of some of our allies, and our navigational risks and losses, which are included, are greater, because of the absence of lights in the waters around our coast and elsewhere.

With regard to enemy exaggeration: For the twelve months of unrestricted submarine warfare, from Feb. 1, 1917, to Jan. 31, 1918, the enemy has proclaimed in his public notifications that he has sunk over 9,500,000 tons of British, allied, and neutral shipping. The actual figures of vessels sunk by submarine action, including those damaged and ultimately abandoned, amount roughly to 6,000,000 tons, so that we have an exaggeration of 3,500,000 tons in twelve months, or well over 58 per cent. In January the exaggeration was 113 per cent. It is rather amusing that since I publicly showed up this grossly false declaration of results the usual return of submarine sinkings for February has not been issued by Berlin. It is now overdue. I think, if any proof of the failure of the campaign is needed, this exaggeration and Berlin's reticence would show it.

TO THE SHIPBUILDING TASK

For the first two years of the war or more the shipyards of the country had lost their men and the work had become dislocated. Hulls had been on the slips for very long periods and there was no material in existence to finish them. Vessels were lying in the yards awaiting engines, but the engines had never been built, because up to 1917 the Admiralty had made use of the engine shops for naval work. There was great confusion in the shipbuilding industry, not due to the fault of the industry, not really due to any one's fault, but due to war conditions. The output had been checked by urgent work being placed in the same works by different departments. With the introduction of the Controller's Department it was immediately realized that this policy was bad for output as a whole. It was accordingly arranged to allocate yards or separate sections of yards, so that one class of tonnage only would be produced. The result is that forty-seven large shipyards, containing 209 berths, are wholly engaged on ocean-going merchant vessels. That is entirely apart from the large private warship building establishments, which are obviously most suited for naval work. But there are in addition eleven—and only eleven—other yards suitable for large merchant tonnage which have at the present time naval craft on the stocks.

I now give the figures of output in the yards. In the fourth quarter of 1914 the merchant tonnage produced in the United Kingdom was 420,000. From that date it steadily fell, and it must be noted that the fall was concurrent with our great munitions effort. In the fourth quarter of 1915 it had fallen to 92,000. It then began to rise, and the rise is as follows:

1916
Tons. Tons.
1st quarter 95,000 3d quarter 125,000
2d quarter108,000 4th quarter213,000
1917
Tons. Tons.
1st quarter246,000 3d quarter248,000
2d quarter249,000 4th quarter420,000

These figures refer to the British Isles alone. In the fourth quarter of 1917 foreign construction was 512,000 tons, giving a total output for the world, exclusive of enemy countries, of 932,000 tons for the last quarter of last year. Against that we have the losses due to enemy action and to maritime risk.

THE MONTHLY DEFICIENCY

These losses amounted for the last quarter of last year to 1,200,000 tons. That was by far the lowest quarter of sinkings we have had since unrestricted submarine warfare began, and it looks as if this quarter was going to be lower still. So that we have the fact that by increase in output and decrease in sinkings for the last quarter of last year the Allies were within 100,000 tons, on the average per month, of making good the loss due to enemy action and marine risks. Considering British losses and output alone, the proportionate deficiency is somewhat higher. We lost on the average 260,000 tons per month during the last quarter of 1917, and we built 140,000 tons per month, an average deficiency of 120,000 tons per month. We must all regret that the British position has suffered most among the Allies, but we have contributed the greatest naval effort, and have sustained the greatest attacks, and I do not think we, as a nation, will bemoan our stars or our naval efforts in this great war.

The net result of maritime risk and enemy action, whether by surface, air or submarine craft, from the beginning of the war until the end of last year is a reduction of 2,500,000 tons of shipping, and from the last quarter of last year the Allies and neutrals are replacing 75 per cent. of the lost tonnage, or only 100,000 tons a month below the losses from all causes.

It is well within the capacity of the allied yards, or even our own yards, before very long, with a proper supply of material and man power entirely to make good the world losses.

SUMMARY OF PROGRESS

I do not think I am divulging information which should not be made public when I say that the output of guns and ammunition of all calibres in 1917 is not far short of twice the output in 1916. I need not remind the House of the special effort being made in the output of airplanes. These, I understand, are nearly two and a half times the output of 1916, and arrangements for labor and material to secure a still greater output this year were in progress during the later months of 1917. We have been able to accomplish what I think must be admitted as an enormous development in the shipbuilding industry. We have reached in 1917 a total warship and merchant tonnage output practically equal to the biggest shipbuilding year this country has ever known. We have multiplied by ten the number of naval craft repaired and refitted, and in six months we have increased the merchant ship repaired tonnage by 80 per cent.—an increase of 237,000 tons per week. I would ask the House to notice this fact, that, notwithstanding all these great extensions of work in many directions, and notwithstanding all these great extensions of power of the country, we ended 1917 with an output of new merchant tonnage of 420,000 for the last quarter, against 213,000 for the last quarter of 1916. That was done, moreover, with a dislocated industry, with yards only gradually being cleared of unfinished work, and with large numbers of unskilled personnel in the yards.