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MARINE REVIEW Entered at Cleveland Post Office as Second-class Mail Matter. Published every Thursday at 39-41 Wade. Bldg., by "the Marine Review Pub. Co. VoL. XXV. CLEVELAND, O., JUNE 26, 1902. Foreign" $150.0 year, ----- a No. 26 Single Copy 10 cents. LICENSED OFFICERS OF STEAM VESSELS. _ Tug men of the great lakes have been on strike almost since the open- ing of navigation. Differences between the men and the Great Lakes Tow- ing Co. as to hours of labor, Sunday work, etc., admit of argument on both sides and will not be helped by newspaper interference. But the charges against the men filed with the several boards of local inspectors of steam vessels around the lakes involve questions of the highest importance to the shipping interests of the entire country, Officials of the tug com- pany seem determined to settle this legal feature, no matter what the outcome may be as to other differences, and on this score they evidently have the support of the vessel owners. Outside of the service, the position of the vessel owner and the relation of licensed officers to the service seem not to be generally understood. An analysis of all the statutes relating to the merchant marine cannot be undertaken here, but only a brief state- ment of those bearing closest relation to the immediate question. _ The federal power over commerce under the constitution brings with- in the control of congress "all the instrumentalities by which that com- merce may be carried on, and the means by which it may be aided and encouraged;"' and it comprehends navigation. Pursuant to this power, vessel property has been surrounded by a great many statutory restrictions unknown to other classes of property, and its employment in the business of commerce and navigation is closely restricted and limited by many regu- lating statutes, to all of which the owner must give strict, even literal compliance, before he may enjoy use of his property. This regulation and control is reposed in the treasury department, and as to construction, maintenance and manning is administered through the inspection service. It is provided that every vessel propelled in whole or in part by steam and navigating the waters of the United States, which are highways of commerce or open to general or competitive navigation, are subject to all the laws governing the steamboat inspection service of the United States (excepting only public vessels of the United States). At the head of this service is an inspector general appointed by the president by and with the consent of the senate. There are also ten supervising inspectors similarly appointed and selected for their knowledge, skill and practical experience in the uses of steam for navigation. There are also boards of local inspec- tors at many important ports, consisting of one inspector of hulls and one inspector of boilers, and in some cases assistant inspectors. These local boards examine the hull, machinery and equipment of steam vessels, and when all the requirements of law have been met issue a certificate entitling the vessel to navigate in accordance with the certificate. In addition to the direct statutory requirements, the secretary of the treasury is given authority to make all such regulations as may be necessary to secure the proper execution of the provisions of law respecting steam vessels, Not only must all the regulating and restrictive requirements of the law as to construction, equipment and maintenance of the vessel herself be strictly complied with, but after this has been done, an owner is only at liberty to employ the vessel in the business for which she is designed at the hands of specially commissioned persons, known as licensed officers. Their certificates of license are in the nature of commissions for service in the merchant marine of the United States, over which congress exer- cises close and stringent control. The owner may himself be a navigator of the highest skill or an engineer of unquestioned competency, yet he cannot take command of his vessel or be in charge of her engine, unless he holds this commission or certificate of license from the inspection de- partment. As a part of the regulative restrictions surrounding this class of property, provision is made for licensing masters, mates, pilots and engineers by the local boards of inspectors, and it is only at the hands of these men that an owner may employ his property in the business of com- merce and navigation. In addition to the qualifications as to character and competency which the government exacts before the inspectors shall issue a certificate of license, it is required that the applicant shall make oath or affirmation, which is recorded with the certificate, that he will faithfully and honestly, according to his best skill and judgment, without conceal- ment or reservation, perform all the duties required of him by law. . the certificate of license which is given after these requirements have been satisfied is not a continuing one, but must be renewed from time to time, and is subject to the power of the inspectors to terminate by suspension or revocation for just cause. : 7 : : It thus appears that not only is the vessel itself as to its construction, equipment and maintenance and the service in which she may be em- ployed, regulated by the, government, but men at whose hands she may be employed are commissioned by the government for the service. | The power thus placed in the hands of men holding this certificate of license to impose terms, if so disposed, would be entirely unlimited, and an owner could only employ his property on terms dictated by them if the statutory regulations stopped at this point. It would seem, however, that in recog- nition of the power so given a limitation has been placed by statute. Sec- tion 4449 of the Revised Statutes of the United States designates three dis- tinct conditions, the violation of any one of which calls for revocation of the officer's license under the terms of the statute, It is provided that if any licensed officer shall, to the hindrance of commerce, wrongfully or unreasonably refuse to serve in his official capacity on any steamer as authorized by the terms of his certificate of license; or if any licensed offi- cer shall fail to deliver to the applicant for such service at the time of such refusal, if the same shall be demanded, a good and sufficient reason 1n writing for such refusal to serve; or if any pilot or engineer shall refuse to admit into the pilot house or engine room any person whom the master or owner may desire to place there for the purpose of learning the pro- fession, in either of these cases the license of the officers must be te: voked. The evident purpose of the statute is to prevent the service habeas is already specialized by the government from being further. apes by licensed officers, and to require them to serve as authorized by the terms of their certificates of license, except for good and sufficient reason in law. It is a@ condition by which they hold their privilege that they -------- A "a m -- -- -- shall not refuse to exercise it on any steam vessel withi their certificates of license, except ee erode aad ae may not refuse to permit others to gather in the engine room or pilot house the practical education and experience which will enable them in ae to apply to the local boards for certificates. Having placed the owner of. vessel property in a position where he is unable to employ it except at the hands of a privileged class of men, it has taken away from that privileged class the power to dictate unreasonable or wrongful terms under pena of revocation of their privilege. he question presented, as we gather it, in the proceedings whi been instituted at various lake ports before the tea ers Wes ah ee is, therefore, whether the men holding this special privilege have either by express agreement or by implied understanding combined together to refuse to serve in their official capacity as authorized by the terms of their certificates of license, and that the effect of this is to hinder commerce. It is not a denial of any right or privilege held by them as citizens, but solely an inquiry as to whether, by the position they have taken, either as individuals or through their association, they have violated one of the conditions subject to which they hold their special privilege; whether their refusal to serve is rightful or wrongful or unreasonable, and whether their oath that they will serve as required by law without concealment or reservation has been violated. If their refusal to serve is unreasonable or wrongful, they have violated one of the conditions and under the terms of the statute their license "shall be revoked." The tribunals for the determination of this question are the local -boards of inspectors. It is not a question for the courts, but is by sta- tute placed with the officers who are authorized to issue the certificates, the power to issue and the power to revoke being reposed in the same men. It has been held by the treasury department that where licensed officers agreed among themselves not to serve in their official capacity in a given class of cases and the basis of their so agreeing was without good and sufficient reason in law, that such agreement must be held to be in effect to the hindrance of commerce, and the officers party thereto, with- out any further act of misconduct on their part, are subject to revocation of their licenses. The gist of the whole matter, irrespective of the particular facts or any antecedent circumstances, seems to be whether the demands or cir- cumstances of the refusal to serve are wrongful or unreasonable, and if so, whether they are an actual hindrance to commerce, or of such character as must in reason be held to be in effect to the hindrance of commerce. [ff so, under the statute the parties thereto have forfeited their right to hold the special privilege. One of the conditions subject to which every li- censed officer of steam vessels holds his privilege, is that he will not, to the hindrance of commerce, refuse to perform the services authorized by his certificate, wrongfully or unreasonably. The character of the privi- lege is manifest; the necessity for limitation is clear. If the privilege were without limitation such as this, the employment of every merchant steam vessel of the United States, in addition to the restrictions placed upon it by the government, would be entirely and completely subject to the will and whim of the licensed men. : ESTIMATED EARNINGS OF STEEL CORPORATION A New York dispatch announces that the first quarter of the United © States Steel Corporation's second fiscal year, namely, the quarter ending with June 30 next, will be seen to be the most prosperous in the history of the combination. It is estimated that the earnings for the quarter will be $38,100,000, divided as follows: April, $11,600,000; May, $13,500,000; June, $13,000,000. Some interesting comparisons may be turned on the estimated figures for the first quarter of this year. Assuming that the net earnings will amount to $38,100,000, they are $2,417,168 in excess of pre- ferred stock requirements for the entire year since 7 per cent. on the out- standing preferred stock calls for $35,682,832. Compared again the net earnings for this quarter are $22,900,000 in excess of the combination's fixed charges, or interest payments for the entire year. These fixed charges amount to $15,200,000. STANDARD OIL NOT INTERESTED IN ROACH SHIP YARD. The newspapers last week contained an item to the effect that the Standard Oil Co. was the real purchaser of the Roach Ship Yard, Chester, Pa., which has just been reorganized with a capital of $5,000,000. The Standard Oil Co., writing to the Review, however, says: "The Standard Oil 'Co. has no interest in the reorganization of the Roach ship yard; nor has it any intention of having its steamers built there in preference to any other ship yard on the coast." = Testifying before the house of commons committee last week, Lord Brassey, secretary of the admiralty, said that he favored the policy of sub- sidizing ocean liners for use as armed cruisers. Undoubtedly it would be to the public advantage to have a number of auxiliary war vessels but it could not be accomplished without subsidies. He added that the owners of the Cunard line now remained as the only British champions in the Atlantic traffic and it would be a national disaster if the line were trans- ferred to a foreign flag. If the Cunard line could not hold its own un- assisted the government ought, from patriotic motives, render the assist- ance necessary to retain the company under the British flag. ee The navy is short of men and orders have been given to Lieut. i, ?: Ryan and a surgeon to make a trip through the strike regions of Pennsyl- vania for the purpose of inducing striking miners to enlist as landsmen. Should any of these men enlist they will be placed on board special train- ing ships and at the end of a six months' cruise will be transferred to regular vessels of war.