SHIPPING FRAUDS.

Grey River Argus, Volume XII, Issue 1286, 12 September 1872, Page 2

SHIPPING FRAUDS.

It has recently been discovered (says the New York Times) that ever since 1865 a series] of daring and successful frauds has been practised on the American Government in the registry of vessels contrary to law. The 6xtent of these frauds may be gathered from the statomant that the New York Custom House authorities are of opinion that more ships have been registered within the last five years than have been built in the whole Union in twice tbe time. By the Registry Law of the United States no foreign built ship can be registered as an American vessel, even though owned by an American citizen, nor may such foreign sbip . engage in the American coasting traue. Aa a consequence, if a British ship proceed to New Orleans say. and for any reason is unable to obtain a cargo, and thence sails to Neve York, she is prohibited from carrying freight between those \nro ports to defray the expense of her voyage. It will thus be seen that she is at a great disadvantage compared with an American ship, which may not only take freight between New Orleans and New York, but is also on a better footing of equality with her competitor in British ports. Hence numbers of American merchants have been buying English-built ships, and have been fraudulently obtaining for them an American registry. The way in which they have managed to do this is as follows : — By an Act of Congress passed in 1852 power is given to the Secretary of the. Treasury to grant permission to an American citizen, owner of a foreign vessel wrecked within ten miles of the coasts of the United States, to register as an American bottom, if in repairing the hull alone three-fourths of the value of the wreck is expended. Taking advantage of this statute, hundreds of vessels, since tbe close of the civil war, have been varefally ran aground at various points on the American coasts previously settled upon, have then been taken into a neighboring port, and repaired at a trifling cost, ana afterwards, by means of wholesale perjury, the desired registry has been obtained. Affidavits from the captain and members of the crew certifying to the " wreck," a port warden's estimate of the same when brought in, and biUs of items sworn to from carpenters, ship-caulkers, and others engaged on the repairs, were required and duly furnished. These papers were deposited with the coiledtor of the port, by whom they were forwarded to Washington to the Secretary of the Treasury, when the registry followed as a matter of course