The New York herald., 1922-10-17

large and small ships; schooners carry
cargoes out to sea from Nassau and
unload them off the coast of the
United States, and smaller boats carry
their cargoes TO Bimini and Gun Key,
and from these places 1t is trans
ported TO West Palm Beach, Day
tona and Fort Lowdendale. A list of
vessels said to be plying between the
United States and the Bahamas is
herewith enclosed.
This department attention has
been drawn to the ease with which
it seems vessels of American registry
are transferred to British registry for
the purpose of preventing the authori-
ties of the United States from taking
the necessary steps TO thwart these
smuggling operations. 1t is under
stood that British laws require that
vessels to be entitled TO British regis
try must be owned by British sub
jects. Apparently reliable informa-
tion indicates that American citizens
of questionable reputation who are
known to be engaged in the snug
Cling business have succeeded in OBJ
tanning British registry at the Bahama
Islands for a large number of Ameri-
can vessels by means of the eXecu-
tion of paper transfers purporting to
convey title to vessels to British sub
jects in the Bahamas, although the
actual interest in the vessels con-
tinues to vest in American citizens.
Registry Transfer Methods.
Reference may be made i'm this con-
nection to the fact that under the
laws of the United States relating
10 the transfer of registry it is neces-
-
vessel to obtain a certificate from
the United States Shipping Board
showing that the vessel has first been
rendered to the board before the privi-
lege of transferring it TO a foreign
register can be obtained. 1t would
be of great assistance to this Gov
ernment In combating the Illicit
traffic i'm liquors If authorities at
Bermuda and in the Bahama Islands
should refuse the privilege of regis
try to American vessels until a GER
tificate from the United States Ship
ping Board is produced showing that
the vessel has first been rendered to
it. 1t is understood that for some
time British laws have imposed re-
strictions necesstating some form of
acquiescence of British authorities to
the transfer of registry. 1t would
seem that laws of this character can
not well be effectively administered
unless the authorities of one nation
are disposed to take cognizance of
the legislation of another nation.
There is information before the De-
partment indicating that the author-
ties at the Bahama Islands have in
many cases issued two sets of clear
ance papers to ships which have taken
on board cargoes OF liquor. It is said
that persons engaged i'm this traffic
have openly made the statement that
they have no trouble in obtaining from
the Bahama customs officials one set
of clearance papers for cargo of
liquor declared to be destined for
Halifax, Tampico or st. Pierre and
other clearance papers issued 'in ball
last for an American port. This pro-
cedure is adopted by the liquor snug
glers so that the ship may come within
unloading distance of American
shores and if caught with cargo
of liquor on board the master can
exhibit the clearance to Mexico or
Canada, if the ship has succeeded in
unloading the cargo on the shore with
out being captured 1t proceeds into
an American port with the second
clearance papers.
Double Clearance Methods.
In this connection / beg to quote
for your information three paragraphs
from an affidavit executed by Fed
eral prohibition agent of this Gov
ernment with respect to the proposal
declared to have been made to him
by Mr.. NJ. Cole, who signs clearance
papers for the Comptroller OF Gus
toms for the British Government at
Nassau, Bahamas. concerning the
issuance of two sets of clearance
papers for liquor ships:
That deponent asked Mr.. Cole how
the liquor runners arranged their
clearance papers and If Il was possi-
BILE to get an extra set of clearance
papers. Mr.. Cole said Just a min
ute,' and then went to the other side
of the room and motioned deponent
to come over. which deponent did
Mr.. Cole then stated substantially as
follows:
THAT there are a number of ways
to handle il. but the best and simplest
way We find is. first, to give you
clearance papers with your liquor.
then in an hour or so come back and
state that you had discharged your
cargo of liquor on the high seas and
then we will give you another set
of papers for lin ballast for any
American port" Mr. Cole then ex-
planned that the first set of papers
referred TO would be for a foreign
port and that If you were searched
they could not touch you, and that
after you had discharged your cargo
of liquor you scould enter the Ameri-
can port with your papers showing
s in ballast
Deponent states further that Mr.
Cole did not say that there would
be any money required outside the
regular fees. but intimated that he
and the boys expected to be taken
care of.
While existing nefarious practices
might be largely stopped by appro-
pirate precautionary measures with re-
spect TO the issuance of British reg
istriss to vessels engaged in SNUG
Cling and with respect TO the issuance
OF clearance papers to such vessels, the
situation with which the authorities OF
this Government are confronted has
become so serious that this Govern
ment feels prompted to inquire whether
your Government would be disposed
to enter into a treaty for the purpose
of checking the Illegal practices in
question. Such a treaty might contain
reciprocal provisions authorizing the
authorities of each Government to ex-
ercise a right of search OF vessels of
the other beyond the three mile limit
OF territorial waters to the extent of
twelve miles from the shore. 1t would
appear that no inconvenience would
be experienced as result OF the exer-