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The shortage of coke shipments to France was not due to short production in Germany. Germany had suffered no war damage whatsoever inside its own borders during World War I. On the other hand, much of the iron-producing territory reacquired by France had been the scene of the bitterest fighting of the war. More people know Verdun as a battlefield than as a steel center. The German Ruhr magnates were converting the greater part of Germany's coal production into coke for new German plants in the Ruhr. They were building an entirely new complex of iron and steel plants to replace those ceded to France after the war. The new plants in the Ruhr were to get the bulk of their ores from the high-grade deposits of Sweden, Spain, and Newfoundland. The extra costs of the long overseas haul were offset by German government subsidies and indemnities. The purpose of this German strategy was destined to become clearer as the postwar adjustments of the 1920's unfolded. During the first years after the war, when coal was scarce in Europe, the German coal producers held the whip hand over France. Since the cost of coal accounted for three fifths of the cost of French pig iron, whoever controlled the cost of coal could control the competitive fate of French iron and steel. German coal producers, who also sat on the managing boards of the German state railways and the new steel firms, arranged exorbitantly high freight rates over the German railways from the Ruhr to the French border. At the same time, drastic cutbacks in ore importations from France produced a further temporary reversal for the French industry. The new German plants got a good head start.
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