ally to an end with the blockade of those islands, and commerce with the West Indies in American vessels was seriously hampered by the very high premiums exacted from such vessels and their cargoes by the marine insurance companies.

The following table summarizes the chief items of service performed by the United States shipping commissioners during the three past fiscal years:

The average cost of the services rendered by the commissioners to owners, masters, and seamen has been 50 cents per capita, compared with 53 cents for the previous fiscal year. In view of the fact that these services include the general supervision of contracts entered into by seamen, the adjustment of difficulties which may arise between them and masters and owners, and the enforcement of numerous laws and regulations, the cost of the service is moderate. Where practicable, these officers assisted recruiting officers in furnishing men for vessels engaged in naval operations during the war.

CITIZENSHIP.

Thirty-five per cent of the shipments on merchant vessels before commissioners were of Americans, compared with 30 per cent for the previous year. The largest foreign element among our merchant seamen are the Scandinavians, who are to be found in all kinds of American vessels. Detailed figures concerning the nativity of seamen on our merchant vessels may be found in Appendix B. The relatively small percentage of Americans on our merchant fleet has been a matter of comment for some years. Up to 1894 similar unfavorable comment was passed on the large proportion of foreigners in our Navy. Congress provided in 1894 that the law requiring a previous declaration of intention to become a citizen might be waived in the case of a seaman who had served for five years on a vessel of the Navy. Since naturalization was made easier the proportion of American citizens in the Navy has notably increased. The same project would, doubtless, produce a similar result among merchant seamen. The laws now permit only native-born or fully naturalized American citizens to be masters or watch officers of American merchant vessels. On contract mail steamships a percentage of the crew is required by law to consist of American citizens. Citizenship thus bestows special privileges on the mariner, and there seems to be no valid reason why these privileges should not be used as an incentive to good conduct on shipboard. The navy law on the subject (28 Stat. L., p. 124) provides that an alien over 21 years, who has served five years honorably in the Navy, on proof of the fact, may be admitted to citizenship by the courts without previous declaration of intention. The draft of a bill applying the same plan of naturalization to the American merchant service may be found in Appendix A.

RENT OF SHIPPING COMMISSIONERS' OFFICES.

An item of $9,000 has again been included in the estimates for the rent, printing, stationery, etc., of shipping commissioners' offices, to comply with the decision of the Supreme Court of the United States in the case of the United States, appellant, v. James C. Reed, rendered on May 24, 1897. This decision was printed in full in the report for 1897, where the subject was considered at length. Since then another judgment of $1,920.60 has been rendered. There appears to be no economy, therefore, in declining to make appropriations for the payment of bills which the court has decided are a legitimate charge on the Government.

ALASKA.

The rush of gold seekers to Alaska during the spring and summer led to the employment of nearly all available craft on the Pacific coast for transportation and brought about the large increase in shipbuilding on that coast already noticed. Returns for the first quarter of the current fiscal year show that a large amount of tonnage is now under construction for the same trade next spring and summer.

Trade between the United States and Alaska has been restricted to American vessels since 1868, but the importance of that restriction was not appreciated until last winter. It was then found necessary to strengthen the law in order to prevent an evasion of its spirit possible with compliance with the letter. Congress accordingly passed the act of February 17, 1898, which secures to American vessels the full privileges supposed to have been bestowed by the act of 1868. By far the greater part of the travel and transportation from the Pacific coast to Alaska was destined for the upper waters of the Yukon. A voyage by sea-going vessels was necessary from the Pacific port of departure to a port in Alaska, and from that port by the difficult mountain passes or by light-draft river steamers up the shallow waters of the Yukon to Dawson. No voyages of such mixed description were contemplated when our laws were framed. The situation was further complicated by treaty stipulation. The second paragraph of Article XXVI of our treaty of 1871 with Great Britain provides:

The navigation of the rivers Yukon, Porcupine, and Stikine, ascending and descending, from, to, and into the sea, shall forever remain free and open for the purposes of commerce to the subjects of Her Britannic Majesty and to the citizens of the United States, subject to any laws and regulations of either country within its own territory not inconsistent with such privilege of free navigation.

Regulations were promulgated by the Secretary of the Treasury to cover this navigation and have been in force during the past season. The regulations, it is believed, reserve to American vessels the full privileges to which they are entitled and at the same time preserve the rights which are guaranteed by treaty to British vessels. So far as navigation interests are concerned, the regulations of the Dominion Government have been framed in the same spirit. As these regulations have the force of law, they are printed for convenience of reference in Appendix L.

FILIBUSTERING EXPEDITIONS.

From April 15, 1895, for nearly three years the Bureau, under the direction of the Secretary of the Treasury, was engaged in the preparation of almost daily instructions to collectors of customs and other NAV 98-5

officers concerning the enforcement of the neutrality laws and the prevention of filibustering expeditions to Cuba in violation of those laws. The last instructions on this subject were issued on March 28, 1898, less than a month before the declaration of war. It is believed that in results attained the enforcement of the neutrality laws will compare favorably with the enforcement of neutrality by any other nation at any time of late years in a position at all analogous to that of the United States. These operations and results have been described in Senate Doc. No. 180, Fifty-fourth Congress, first session, March 18, 1896; letter of the Secretary of the Treasury to the Secretary of State, November 30, 1897, Treasury Doc. No. 1989; Senate Doc. No. 35, Fiftyfifth Congress, second session, December 17, 1897, and House Doc. No. 326, Fifty-fifth Congress, second session, February 28, 1898.

COAL AND CONTRABAND OF WAR.

The execution of the act of April 22, 1898, concerning the export of coal or other material used in war from any seaport of the United States, was delegated by the President to the Secretary of the Treasury. At the time the long-continued strike in the Welsh collieries offered an unusual opportunity for increased exportation of American coal. Not only were the West Indies and Mexico nearly cut off from their usual supply of British coal, but even some of the steamship lines between British and African ports turned to this country for supplies. Rigid regulations would have deprived American exporters and miners of new openings for the export of coal, not only at immediate pecuniary loss, but also at the loss of future trade based on the reputation of the product, to establish which an unusual opportunity had been afforded. That the regulations adopted and the method of their enforcement pursued served the ends which Congress had in view is shown by the fact that while our exports for May and June showed an increase of 7 per cent over coal exported during the same months in 1897, no coal, so far as known, reached the hands of the enemy during hostilities, and only a few hundred tons, part of the cargo of one small schooner, were transferred to a Spanish merchant vessel in a Mexican port. Restrictions on the export of coal were removed as soon as practicable after the destruction of the Cervera fleet. The influence of the Treasury Department was also successfully exerted against the classification of coal, as contraband of war, except under conditions showing an evident belligerent purpose. Had coal been declared unconditionally contraband of war, the precedent would have been awkard in the event of war between foreign nations where the United States as a neutral would desire the largest opportunities for the exportation of coal. For like reasons it was desired that the list of contraband articles be confined within the narrowest practicable limits, and the list actually promulgated conformed to that view:

Absolutely contraband.-Ordnance; machine guns and their appliances, and the parts thereof; armor plate, and whatever pertains to the offensive and defensive armament of naval vessels; arms and instruments of iron, steel, brass, or copper, or of any other material, such arms and instruments being specially adapted for use in war by land or sea; torpedoes and their appurtenances; cases for mines, of whatever material; engineering and transport materials, such as gun carriages, caissons cartridge boxes, campaigning forges, canteens, pontoons; ordnance stores; portable range finders; signal flags destined for naval use; ammunition and explosives of all kinds; machinery for the manufacture of arms and munitions of war; saltpeter; military accouterments and equipments of all sorts; horses.

Conditionally contraband.-Coal, when destined for a naval station, a port of call, or a ship or ships of the enemy; materials for the construction of railways or

telegraphs, and money, when such materials or money are destined for the enemy's forces; provisions, when destined for an enemy's ship or ships, or for a place that is besieged.

CERTIFICATES OF TITLE.

For obvious reasons, bills of sale, mortgages, hypothecations, and other documents relating to the title of ownership of vessels are recorded in the custom-houses. These records are open to inspection, and by section 4194, Revised Statutes, collectors are required to furnish to applicants certificates of material facts of record relating to ownership. Up to 1886 collectors were authorized to charge a fee of $1 for a search of title and the certificate of record. The act of June 19, 1886, abolished the payment by parties in interest of many fees which were burdensome on navigation, but provided that such fees, as a rule, should be payable from the Treasury. The fee of $1 above referred to was included in the fees mentioned by the act of 1886. The search of title and certificate of record of a vessel's ownership are not essentially public services, and there is no reason why fees for this purpose should be a charge on the revenues. At the last session the Senate passed unanimously a bill providing that this fee of $1 shall be paid by the parties directly concerned and not by the Government. It has since been objected that local assessors frequently require such certificates in making out rolls of taxable property and that they should not be required to pay the fee in the discharge of their duties. As all the facts which the certificate sets forth are matters of record, open to inspection, the objection does not seem valid. If assessors or private persons require copies of records from customs officers, they, rather than the Government, should pay the reasonable fee charged for clerical work. It is recommended that S. 946, on this

subject, be passed. (Appendix A.)

USE OF THE FLAG.

At the last session of Congress a bill was favorably reported to the Senate requiring vessels of the United States to hoist the American flag on entering and leaving any foreign port, and if the vessel be over 50 tons on entering and leaving a port of the United States. The fact that the bill chanced to be brought up for consideration on the 4th of July, after a notable naval victory, led to an impression that the measure was sentimental. In fact, it is a plain business proposition, based on the current practice of nations. Its object is to require American vessels in foreign trade to have on board an American flag. The laws of some nations and port regulations in the harbors of others require vessels to display the flag, under penalty for failure to do so. The bill is designed as a notice to American masters of this requirement abroad. It will be an economy to them in the long run. Such notice will not be effectual unless accompanied by a penalty. On the seas the flag, next to lights and the fog horn, is the most important signal which vessels should be called upon to carry. Serviceable flags may now be bought for a few dollars. The burden, therefore, is not appreciable. The passage of the bill before the Senate is recommended. (Appendix A.) The date of its enforcement, however, should be changed so as to allow ample notice to shipowners and masters. The requirement that vessels of over 50 tons entering and leaving American ports shall display the flag may be amended by adding the words "from or for a foreign port," if it be apprehended

that owners in the coasting trade will find it burdensome to purchase the flag and display it.

LOG ENTRY OF COLLISIONS.

In accord with the recommendations of the American delegates to the Washington International Marine Conference, it is suggested that, wherever practicable, masters be required to make entries in the log book of collisions while all the circumstances are fresh in memory. The utility of such a law will be evident to anyone who has read the testimony in cases of collisions. The provisions in regard to entries in logs are contained in section 4290, Revised Statutes. The desired result can be obtained by the enactment of the bill in Appendix A.

CONCLUSION.

The list of merchant vessels, issued pursuant to law, will soon be distributed among those materially interested in shipping. The code list of American vessels for use at sea will be forwarded to the owners of seagoing vessels, to be placed and retained on board of each vessel. The volume of work in the Bureau for the calendar year is already the largest in its history. I wish to record my thanks to Mr. Thomas B. Sanders, Deputy Commissioner, almost continuously since the organization of the Bureau, and to the clerks of the office, for its prompt dispatch.

Respectfully, yours,

EUGENE TYLER CHAMBERLAIN,

Hon. LYMAN J. GAGE,

Secretary of the Treasury.

Commissioner.