Norm, An interesting discussion but like most anything else Military I don't think you can make such a blanket statement about their issue. My example is unit marked to the 2nd Torpedo Division. These were certainly not just ceremonial. Yes, U boat issue seems problamatical but like most cumbersome weapons in close quarters they were likely kept in lockers for issue to shore/boarding parties. There were very few of these made by Simson & Co. that's for sure! 1000 is the number I remember. In 3 decades of collecting I have only come across the two I bought and now this one.
For the Imperial era they are not all that much bigger than say a stag handled police bayonet. and they would be a formidable weapon in close quarter fighting. They are heavy and like a machete. I can see how one could be useful on an island water collecting party.
I suspect they might have been issued to torpedo boats. But they are military accepted, Imperial Crown M just like the Navy pistol.
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