No. 1.
To the consular officers of the United States
at seaports.
Washington, February 18, 1880.
Gentlemen: Inquiries have from time to time been addressed to the Department by consular officers in regard to the legal status, rights, and liabilities of foreign-built vessels purchased abroad and wholly owned by citizens of the United States. A recent instance of this kind, brought to the attention of the Department by the consul at Panama, in regard to the steamship Honduras, suggests the propriety of a general instruction on the questions involved in that case. The vessel in question was built at Liverpool in 1871, and upon her arrival, in Panama, in September last (1879), was sold by her foreign owner to the Panama Railroad Company; soon after the railroad company sold the vessel to the Pacific Mail Steamship Company, both of these companies being American corporations. The Pacific Mail again sold the vessel to the Panama Railroad Company, which latter company now runs the steamer between Panama and the port of Champerico, Guatemala, in the common interest of both companies. Upon the facts the consul asked instruction upon two points:
- First. “Is such a vessel required to pay tonnage dues, as required by law of registered American vessels?”
- Second. “Is her crew to be shipped and discharged in accordance with the law and regulations applicable to the crews of regularly registered or enrolled American vessels?”
The existing regulations of the Treasury in regard to this class of vessels, and bearing especially upon the points under consideration, are found in Chapter IV of the Regulations of 1874 of that Department, and for convenience are transcribed here:
- Art. 93. Foreign-built vessels purchased and wholly owned by citizens of the United States, whether purchased of belligerents or neutrals during a war to which the United States are not a party, or in peace, of foreign owners, are entitled to the protection of the authorities and flag of the United States, as the property of American citizens, although no register, enrollment, license or other marine document prescribed by the laws of the United States can the lawfully issued to such vessels.
- Art. 94. To enable, however, the owners of a vessel so circumstanced to protect their rights if molested or questioned, the collector of customs, though forbidden by law to grant any marine document or certificate of ownership, may lawfully make record of the bill of sale in his office, authenticate its validity in form and substance, and deliver to the owner a certificate to that effect; certifying, also, that the owner is a citizen of the United States.
- These facts, thus authenticated, if the transfer was in good faith, entitle the vessel to protection as the lawful property of a citizen of the United States; and the authentication of the bill of sale and of citizenship will he prima facie proof of suck good faith.
- Art. 96. Before granting such certificate, the collector of customs will require the tonnage of the vessel to be duly ascertained in pursuance of law, and insert the same in the description of the vessel in his certificate.
The rulings and instructions of this Department have been in general accord with the above provisions of the Treasury regulations. It is therefore concluded that foreign-built vessels purchased abroad and wholly owned by citizens of the United States and plying in foreign waters, are to be considered subject to the exaction and payment of tonnage dues in the same manner as regularly registered or enrolled American vessels, and consuls are expected and required to collect such dues. In the case of vessels running regularly by weekly or monthly trips, or otherwise, as is the case with the Honduras, the tonnage dues are required by law to be made only for four trips a year, and this payment, in accordance with the former ruling of the Department, is to be made either at the principal port of departure or that of final destination of the vessel, and on the first four trips in the calendar year.
In regard to the second question, namely, whether the crews are to be shipped and discharged before the consul, as in the case of registered or enrolled vessels, it is found that in many instances the crews of such vessels are made up largely of men who are not citizens of the United States, and who have not acquired the character of American seamen within the meaning of the law, by service on a registered vessel of the United States. As to these, when they ship at a foreign port, whether under contract to be discharged at another foreign port or not, extra wages are not to be demanded on their account, nor are they entitled to relief as destitute American seamen under the laws providing for such relief. Seamen of this character, therefore, serving on the vessels referred to, under a contract not made in the United States, are not considered to be within the jurisdictional cognizance of the consul as to their contracts of shipment and discharge. But seamen engaging on this class of vessels who are citizens of the United States, and foreigners who have acquired the character of American seamen, within the meaning of the law, by service on registered or enrolled American vessels, and still claim and maintain that character, are to be shipped and discharged before the consul in the same manner as that provided by law and regulation for the shipment and discharge of American seamen of registered or enrolled American vessels. And this class of mariners being entitled to relief as destitute American seamen, when found under the conditions essential to such relief, are entitled to have collected extra wages on their account when discharged at a foreign port under the conditions prescribed by law, for the demand and collection of the three months’ extra wages.
It is desired, in any cases of the character referred to that may present themselves within your consular jurisdiction in the future, that you will conform your course to the suggestions of this instruction.
I am, &c.,