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AMERICAN REGISTER FOR THE STEAMER BROOKLYN.

FEBRUARY 17, 1905.-Ordered to be printed.

Mr. STONE, from the Committee on Commerce, submitted the following

REPORT.

[To accompany S. 179.]

The Committee on Commerce, to whom was referred the bill (S. 179) to provide an American register for the steamer Brooklyn, having considered the same report as follows:

A bill similar to the one under consideration was favorably reported from this committee during the first session of the last Congress. Evidence filed with the committee shows the following facts:

At the commencement of the war with Spain the War Department purchased the foreign-built steamer Obdam from her foreign owners, named her the U. S. transport McPherson, and she was used for over three years for the transportation of troops and supplies to and from the islands of Cuba and Porto Rico, and being the property of the United States she flew the American flag. While still employed as a United States transport she was wrecked February 4, 1901, on the coast of Cuba about 8 or 9 miles west of Matanzas Harbor (about 70 miles from the Florida coast), Cuba being then under the military control of the United States. The McPherson remained ashore until June 2, 1901, nearly four months, when she was salved by the War Department and brought to New York and sold by the United States Government at public auction, by order of the Secretary of War, to the highest bidder, L. E. Lunt, a citizen of the United States, for $11,150, who in turn sold her to her present owner, W. J. Lathan, also a United States citizen, for $15,000. The Merritt & Chapman Derrick and Wrecking Company of New York were paid $70,000 for their salvage services in this case.

The general impression was that this vessel was entitled to continue to fly the American flag, because of the fact that title to her was given by the Secretary of War.

The following is an extract from the bill of sale given by the Secretary of War in conveying this vessel:

* * *

I, Elihu Root, Secretary of War, on behalf of the United States, owning the whole of the wrecked army transport McPherson, of the burden of 2,277 tons do bargain and sell etc., and warrant the title against all and every person

* * *

or persons whomsoever.

*

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Her present owner changed the vessel's name to Brooklyn, and entered into a contract with the Morse Iron Works and Dry Dock Company of Brooklyn, N. Y., to put in a new bottom and keel, to repair engines, etc., and to completely restore her from the injuries due to the wreck, at a cost of $90,000. Vouchers presented to the committee shows that $88,500 of the $90,000 has already been paid on the contract price and it is shown that the repairs are practically completed and that only certain details of work remain unfinished.

The progress of these repairs has been delayed by strikes and other labor troubles at the Morse Company's yards and by a fire which occurred on the Brooklyn August 8, 1902. Recently the labor troubles at the yard culminated in shutting down work, and the yard is now closed and in the hands of a receiver.

It is estimated that the vessel can be gotten ready for sea in sixty days' time.

A similar bill to the one under consideration was referred during the last Congress by the House Committee on Interstate and Foreign Commerce to the Secretary of the Treasury for his views. The following is the Treasury Department's letter:

TREASURY DEPARTMENT, OFFICE OF THE SECRETARY,

Washington, April 12, 1902.

SIR: I have the honor to acknowledge the receipt of the letter dated the 10th instant from your committee, referring House bill No. 13480, to provide an American registry for the steamer Brooklyn, and requesting this Department to furnish your committee with such suggestions as may be deemed proper touching the merits of the bill and the propriety of its passage.

The bill authorizes and directs the Commissioner of Navigation to cause the foreign-built steamer Brooklyn, wrecked in Cuban waters, purchased by a citizen of the United States, and now under repair in a shipyard in the United States, to be registered as a vessel of the United States whenever it shall be shown to the Commissioner of Navigation that the repairs made upon the vessel have amounted to three times the purchase price.

In reply, this Department has to state that it has no objection to the passage of the bill, it appearing that if the facts are as recited therein the case is at least within the spirit of section 4136, Revised Statutes, relating to the registry in certain cases of vessels wrecked in the United States.

Respectfully,

Hon. WILLIAM P. HEPBURN,

Chairman Committee on Interstate and Foreign Commerce,

(ee H. Rep. No. 1827, 57th Cong., 1st sess.)

L. M. SHAW,

House of Representatives.

Secretary.

The Enterprise case, favorably reported from this committee and enacted into a law at second session Fifty-sixth Congress, was almost precisely similar to this case. The steamer Enterprise was wrecked in Cuban waters and the Commissioner of Navigation recommended to Congress the registration on the ground that Cuba was at the time under the military control of the United States, which, in his opinion, made the place of wreck analogous to a wreck in United States waters. The same recommendation will apply to the present case.

The present bill was referred to the Department of Commerce and Labor at this session by the House committee, and the following is its reply:

DEPARTMENT OF COMMERCE AND LABOR,

OFFICE OF THE SECRETARY,
Washington, December 12, 1903.

SIR: The Department has received your letter of the 9th instant, inclosing a copy of H. R. 5392, a bill to provide an American register for the foreign-built

steamer Brooklyn, and requesting any suggestions the Department may deem proper to make as to the enactment into law of this bill.

The bill appears to be identical with H. R. 13480, Fifty-seventh Congress, first session, on which a report was made by the Secretary of the Treasury on April 12, 1902, copy of which is inclosed.

The Brooklyn was formerly the Army transport McPherson, and was wrecked in Cuba during American occupation. These considerations differentiate in some respects this bill from other applications for American registers.

The Bureau of Navigation, which has been transferred to this Department, has no additional information on the subject.

Respectfully,

Hon. CHARLES H. GROSVENOR,

GEO. B. CORTELYOU,

Chairman Committee on the Merchant Marine and Fisheries,

Secretary.

House of Representatives.

A letter on file in the committee from G. Stanbury, Lloyd's principal surveyor for the United States, states that when the repairs are completed upon the McPherson she will be eligible to be recommended. to the committee on Lloyd's register for the 100 A 1 class.

Under the general law covering the admission of rebuilt wrecked vessels, where the wreck occurs in United States waters, it is required. that the amount of repairs shall amount to three times the purchase price of the wreck (sec. 4136, Rev. Stat.). Salvage is recognized as a repair item. In the present case the repairs (exclusive of salvage) will amount to nearly eight times the price realized for the wreck at public auction by the War Department.

Letters from prominent shipbuilding companies favoring the passage of this bill are printed in the appendix to this report.

As the title to the Brooklyn is derived from the United States, through the Secretary of War, and as this case shows a compliance with all the requirements of the general law except that the wreck took place in Cuban waters instead of in the waters of the United States, your committee report back S. 179 and recommend its passage.

APPENDIX.

ADVERTISEMENT OF SALE.

OFFICE OF DEPOT QUARTERMASTER,
New York, N. Y., October 23, 1901.

The iron steamer McPherson, built in Belfast, Ireland, in 1881, will be sold at public auction at this office at 12 o'clock noon November 7, 1901. Following are measurements of vessel above named: Length, 410 feet between perpendiculars; breadth of beam, molded, 39 feet 6 inches; depth of hold, 33 feet; draft forward, light, 16 feet 4 inches; loaded, 18 feet 6 inches; draft aft, light, 20 feet 5 inches; loaded, 22 feet 6 inches; tonnage, by measurement, gross, 3,699; net, 2,277. Main engine built in Rotterdam in 1896. Bids submitted by mail will also be entertained if accompanied by certified check equal in amount to 10 per cent of amount of bid.

The Government reserves the right to accept or reject any or all bids. The vessel may be seen at the docks of Morse Iron Works, foot of Fifty-sixth street, Brooklyn, N. Y. Bids sent by mail must be signed by the bidder, inclosed in sealed envelope, marked "Bids for purchase of steamer McPherson, and addressed to

F. VON SCHKADER,

Major and Acting Depot Quartermaster.

To whom it may concern:

43 CEDAR STREET, New York, September 24, 1992.

I beg to state I do not see any objection to granting an American register to the steamer Brooklyn, ex transport McPherson, because she was wrecked on the island of Cuba while said island was under the military control of the United States (practically American waters). She was repaired in an American shipyard by an American citizen and a large amount of money expended on her, and I do not feel that the granting of such registry will injuriously affect American shipbuilding interests.

Yours, truly,

LOUIS NIXON,

· President of the United States Shipbuilding Company.

Which includes the Union Iron Works of San Francisco; the Bethlehem Steel Company; Bath Iron Works and the Hyde Windlass Company, of Bath, Me.; the Crescent Shipyard, of Elizabethport, N. J.; Samuel L. Moore & Sons Co., Canda Manufacturing Company, Eastern Shipbuilding Company, New London, Conn., and Harlan & Hollingsworth Company, Wilmington, Del.

THE NEAFIE & LEVY SHIP AND ENGINE BUILDING COMPANY,

Philadelphia, April 29, 1902.

DEAR SIR: Referring to the matter of granting an American register to the steamer Brooklyn, formerly the wrecked United States transport McPherson, we, as shipbuilders, can see no objection to the admission of this vessel, as in our opinion it will have no effect upon the shipbuilding industry of this country.

SOMMERS N. SMITH,
Vice-President and General Manager.

Hon. W. P. FRYE, Washington D. C.

TOWNSEND DOWNEY SHIPBUILDING COMPANY,
New York, April 29, 1902.

DEAR SIR: We understand that Mr. Lathan, of New York, the present owner of the steamship Brooklyn, ex U. S. transport McPherson, has applied for an American register for this ship, and that parties are opposing this application, alleging that shipbuilders object to an American register being granted to this ship. We beg to advise you that in this particular instance, as this ship, while owned by the United States Government, was wrecked on the coast of Cuba while the island of Cuba was under administration of the United States Government, that we believe that it would be right and in line with the law on the subject of granting American registers to foreign-built ships, and it would be right for the United States Government to grant an American register to this particular vessel.

Yours, very truly,

Hon. WILLIAM P. FRYE,

Washington, D. C.

TOWNSEND DOWNEY SHIPBUILDING COMPANY, By WALLACE DOWNEY, President.

BROOKLYN, April 30, 1902.

DEAR SIR: We beg to advise you that we have no objection to the granting of an American register to the wrecked U. S. transport McPherson, as the vessel was wrecked upon the island of Cuba, which was under the protection of the United States flag. The granting of a register to this steamer will have no detrimental effect on the shipbuilding industry of the United States.

Respectfully, yours,

DOWNING & LAWRENCE DRY DOCK Co., By M. D. LAWRENCE, Vice-President.

Hon. Wм. P. FRYE, Washington, D. C.

THEO. A. CRANE'S SONS COMPANY,
SHIPBUILDING AND DRY DOCKING,
Brooklyn, May 7, 1902.

DEAR SIR: We do not oppose granting an American register to the wrecked American transport McPherson, as she was wrecked in Cuba while she was under the protection of the American flag.

The admittance of this steamer will not affect the shipbuilding industry of the United States.

Yours, respectfully,

Hon. W. P. FRYE, Washington, D. C.

JONATHAN MORSE.

BROOKLYN, N. Y., May 7, 1902.

SIR: We do not object to granting an American register to the wrecked U. S. transport McPherson, as she was the only transport that was wrecked on the coast of Cuba while that island was under the protection of the American flag.

We do not think the admission of this vessel will affect the shipbuilding industry. Respectfully,

ROSS IRON WORKS,

Per JOSEPH MCCARDIN, Treasurer.

Hon. W. P. FRYE, Washington, D. C.

JOHN H. DIALOGUE & SONS, STEAMSHIP BUILDERS,

Camden, N. J., April 29, 1902. DEAR SIR: We have examined into the matter granting an American register for wrecked transport McPherson, and as shipbuilders see no injury to American shipbuilding business, as the repairs and betterments required thereby in this instance are much in excess of those required for vessels wrecked in American waters.

Very respectfully,

Hon. W. P. FRYE, Washington, D. C.

JOHN DIALOGUE & SONS.

THE TIETJEN & LANG DRY DOCK COMPANY,
SHIPWRIGHTS AND CALKERS,
Hoboken, N. J., May 3, 1902.

GENTLEMEN: We, the undersigned, have learned you have an application for registering the steamer Brooklyn, formerly the U. S. army transport McPherson. The said vessel should be entitled to said registry on account of the large amount of money it takes to repair her.

THE TIETJEN & LANG DRY DOCK COMPANY,
FREDERICK C. LANG.

The MERCHANT MARINE AND FISHERIES COMMITTEE.

BROOKLYN, N. Y., May 7, 1902. DEAR SIR: We beg to advise you we have no objection to granting an American register to the wrecked American transport McPherson, because she was wrecked in Cuba while that island was under protection of the United States.

She was sold to an American citizen and repaired by an American citizen in an American shipyard. The admittance of this steamer will not affect the ship industry of the United States.

Yours, respectfully,

BROOKLYN Warehouse and DRY DOCK COMPANY, Per A. C. B.

Hon. W. P. FRYE, Washington, D. C.

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