The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-05-12
REGISTRY OF FOREIGN VESSELS.
shipowners Defrauding the Custo

ShipOwncrs Defrauding the Custom
House-How the Fraud Was Done-Pcr-
jury by WhOlcsnle-The Custom House
Investig First Case In Court.
For several months past Deputy Surveyor Abel
has been engaged in prosecuting close investiga-
ton into system OF fraud that has been going on
since the close OF the war. 1t was a common prac-
tice during the war for owners Of vessels to get
their vessels registered In foreign countries, thus
protecting themselves against losses that were
almost certain to come from rebel cruisers.
After the war these same men endcavored to
get law passed in Congress allowing them to
re-regster their vessels as American, which
Congress refused to do, believing that the petit
TONERS had shown symptoms OF disloyalty by their
acts. The result Of this was that in many instances
these shipowners are said to have avaied them
selves OF old law, by the provisions OF which, in
case vessel was wrecked in American waters, and
that her owner, in rebuilding or repairing her, ex
pended three-fourths OF the money she was worth
as wreck, that vessel might then be registered
an American bottom Then, again, since the close
OF the war the great difference OF the cost OF ship
building in England as compared with this country
offered a temptation to purchase English built
ships, and the advantages to Americans Of having
their ships registered in this country operated to
produce desire for American registry.
From these causes arose system OF fraud upon
the government that has been going on, it fs
claimed, for several years. So far as be learned
frauds have been committed, not only In procuring
the re-regstry of ships transferred during the re
bellion but also in the saving OF money effected by
the purchase Of English bottoms Since the war
closed. The effect has been found to be of serious
injury to American shpbuilding which, owing to
the war, could not possibly have competed with
England in this branch OF industry. SO long as
there was great facility to purchase English bot
toms and at the same time secure all the advan-
tages Of American registry it is alleged there were
many willing to commit the frauds, though they
necessarily involved system OF perjury. The man.
ner in which the registry was secured necessarily
needed the afldavits of number OF persons both
to the wreck OF the ship and the expenditure for
repairs, and 1t Is concerning these afidavits that
the Custom House directs its efforts. The investi-
cations SO far have proved that there must be q
number OF cases to be disposed of under the head
Of this mercantile swindle, but up to the present
there are only a few which might be said to be
complete.
On Thursday last Deputy Surveyor Abel presented
to United States Commissioner Belts the papers in
one that it is intended to press. It has been
the rule to procure the registration through the
agency of brokers' and in this the complaint is
made against stephen B. Babcock, broker, who
however, alleges that at the time of the presenta-
ton of the papers he had no idea they were fraudu
lent. The examination in the case is to be heard in
June. Other cases are to follow.