The situation on the Baltic Sea is peculiarly unfavorable, no harbor, with the exception of Kiel, being deep enough to accommodate our larger steamships. At Danzig the dredging of navigable waters and extension of docks should be planned, which are of great importance from a military standpoint. The other smaller ports on the Baltic are at present not suitable for transporting troops. The Kiel harbor could not be utilized for the loading of large transports because of the same conditions that affect Wilhelmshaven, namely, the delay that might hinder the rapid mobilizing of the fleet, which would not be permitted. The docks at Kiel must therefore be greatly enlarged so that they could thoroughly satisfy simultaneously the demands of the battle and transport fleets. Pillau and Swinemuende should be authorized to extend their very small docks. On the other hand, the large dry docks in Danzig, Stettin and Kiel should be in a position, within the shortest possible time, to provide the necessary buildings for transporting, if the materials and warehouses are planned correctly. Of the greatest importance in operations over the sea is the provision of the proper number of ships. Defects in preparations in time of peace would hinder successful execution and would give the enemy time to take the necessary precautions to oppose an invasion. Yet it should be stated that England, at the outbreak of the Boer, although lacking full preparation during peace, in the course of a few weeks procured the required number of ships for the first shipment. The problem of ship control would at best fall to the loading commission, which should be settled upon as an established authority to make a comprehensive survey and appraise the German steamers for military transporting. This commission should also list the foreign-owned steamers which might be available in the harbors for use in emergencies. Through close commercial relations this control can be extended to neighboring foreign ports (Amsterdam, Rotterdam, Copenhagen) to the end that we might charter several large foreign steamers. The construction of stables for horses on our commercial ships would cause delay, as we have pointed out previously. It would seem advantageous to have our subsidized steamship companies to build several ships which can be quickly adjusted for shipping horses. This ought to be an easy matter with ships used for shipping cattle. The Hamburg-American Line, it is known, will readily provide such a ship. The management of the transport depots and the training of the dry-dock and harbor personnel would obviously fall to the loading commission. In a similar way, the navy would be permitted to divide the sea-fighting strength, in the event of mobilization, into a fleet of warships and an escort for the transport fleet, assuring effective protection and a fighting force equal in rank to the enemy. PREPARATIONS AT THE OUTBREAK OF WAR.