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relying upon the correctness of the register, which is their only source of information, give credit to the vessel and her registered owners. Private bills of sale are doubtful securities to the holder until registered, but they can be registered at any time, therefore if a managing owner gets into trouble, his co-owners may find that his entire number of shares has been sold to and registered by persons quite unable to pay the debts of the ship, when those of the remaining registered owners who can pay are obliged to defray the ship's debts. In a case which lately happened, an owner of two shares had to pay not only his own share of debts, but those of his co-owners. Mortgages again are often given and not registered, although non-registration imperils the security, as in the case of bills of sale; and there is nothing to prevent money being advanced on shares, if the register makes the ship appear as if owned by a person and wholly unencumbered though he may have given private bills of sale unregistered previously. If the holder of a bill of sale gets it registered first, he defeats the mortgagee's security, and vice versa. So many cases have come to light of securities being doubly pledged, that the fraud we have suggested is anything but imaginary. On sound commercial principles, no man of business should hold a bill of sale of, or mortgage on, any vessel without having it instantly recorded in the register book at the Custom House, for it is unjust to others as well as dangerous to himself to neglect this. Moreover the liability of holders of private bills of sale is more extensive than many people suppose, and frequently an unregistered owner can be made liable for supplies to the ship. Trustees and executors would do well to bear this in mind. But assuming that holders of private bills of sale can be held liable under certain circumstances for the ship's debt, yet it is for the creditor to establish the liability, which is most unfair; and the only legislative remedy would be to compel the registration of the name of every holder of a bill of sale or mortgage; then the creditor would only have to look to the register to ascertain who is responsible to him. This is the intention of the law now, and all that is needed is that the intention be fulfilled. Turnbull's Register of Shipping for the East Coast gives particulars of the registered holder of each share, and it is a pity such a book

does not exist for London, Liverpool, Glasgow, and other places. For the payment of one shilling at Basinghall Street, similar information can be obtained from the Register there, but to be of practical use, it wants compiling by some intelligent man into a book for each port, with the addition of the registered mortgages, for with the assistance of such books as these the creditor, at any rate in England, could see at a glance whom he is trusting, and thus protect himself from loss. The member of the outside public who invests in ships often cares for none of these things, and suffers accordingly. One great cause of increase in the number of steamers has been the profit which, in some ports more than others, accrues to managing owners in such capacity; brokers and others often "place" the shares of ships, taking a small number themselves to secure the management and consequent profit. Shipowning, as a distinct business, as formerly existing, has been considerably altered, and some ship-brokers combine both characters. It is thought that managing steamers, and holding shares with other shipowners gives a backbone to a shipbroker's business. So it does, and has done, while business was brisk, and 30 and 40 per cent. was made by owners generally on their shares, and some managing owners then (what with brokerages every few months on the chartering, and on the insurances, with the addition of the managing commission), possibly secured 50 to 60 per cent. on their shares. In a depressed time like that which we have just passed through, ordinary owners get a smaller interest on their shares, although a good interest is often secured to the managing owner from his brokerages and commissions, &c., and the misfortune for other owners sometimes is that the managing owner's other interests are not always the same as those of his coowners. Would a merchant who receives tea from China, produce from India, sugar from the West Indies, or corn from the exporting countries, place his cargoes in the hands of brokers in Mincing and Mark Lanes, if he knew those very brokers had produce of their own to sell, and had their own interests to serve as well as, if not before, those he entrusted to them? Yet an analogous proceeding not infrequently happens in the shipping business. In some ports, those persons who have shares in steamers, and go in purely for shipowning as a business, charge only (say) £100 a year for counting

house expenses, and in some cases also credit the steamer with a share of the brokerages they receive, and usually taken by managing owners; and in addition also credit the discounts on the stores, &c., purchased for cash payments. In some other cases the managing owner has been known to take all these for himself. Co-owners in many other cases are now beginning to insist on the first plan being followed, and that where the managing owner is a broker, he should be made to be content with his manager's commission; or with a fixed allowance, which should be recognised by all the coowners: when this arrangement exists all brokerages are returned, and not given to his firm to back up his business at the expense of his co-owners' profits. Meetings to bring about this kind of management have recently been called in Cumberland, as will be seen by referring to the accounts at length of the meetings reported in the West Cumberland Guardian and Whitehaven Herald of the 18th, 20th, and 27th September last. The broker is, under such a system, either a broker pure and simple, as he ought to be, or else a shipowner, making the management of ships his business, and being paid a fair remuneration. The outside members of the community who hold shares in ships, are beginning to inquire whether the evil of allowing a managing owner to charge brokerages is not that, being sure of his brokerages, he can afford to consider the interest of the merchants before the interest of his co-owners, and whether he may not be tempted to do so to secure the brokerage business which the merchants can put in his way. It is very difficult for coowners to dispute or inspect the contracts of their manager. Brokers are, in some cases, in the habit of employing others in various trades who have steamers, so as to get a reciprocation.

Some shipbuilders also, by assisting the increase of tonnage beyond the demand, have helped to bring about a depression. Competition among builders has for some years been very great, Clyde versus the Tyne, Wear, Hartlepool, and Stockton, and there are those who think that the East Coast has fairly won the day, though there is no denying the fact that exceptionally wellfinished work is the characteristic of the Clyde. Cargo boats,

however, do not require this. East Coast built steamers earn as much money and give the speed quite as well as do the most finished boats of the Clyde. At the outset of the shipowning mania some builders would not enter into the speculative spirit of the day, and for two or three years were content to secure such orders only as really paid them; but on the heavy fall in iron and the cheapening of wages, to hold their own position they had to take orders which little more than paid the outgoings, or else to take orders at better rates but entailing long dates, sometimes three or four years, for the payment of the instalments of the purchase-money. They were, also, very often compelled to take shares in the steamers themselves to get the ship built at all. This system has, however, not bettered the position of shipping at the present time, whatever it may do for the future, and it has increased tonnage on an unsound basis; moreover, speculators, with next to no means, have, in some instances, become shipowners.

The idea of the parties who began this system of becoming owners was no doubt ingenious, but it is not based on sound commercial principles. The calculations to allow of such arrangements were made some years ago, when freights were high, and were based on the long credit for the payment of the purchase-money of the steamer, as against the ready receipt of the freights. The receipt of the freights allowed working disbursements to be paid, and yielded enough to meet the bills for the instalments of purchase-money without calling on the shareholders; and by settling after every voyage, and paying the co-owners a good percentage on their shares, they were in funds to pay when the amount had to be provided. Hence, in a period when freights were high, little or no money was needed to be found. When, however, any depression sets in, and sailing expenses do not diminish, and heavy expenditure is necessary for repairs, the ship turns out a white elephant, and must so continue until sold, perhaps at a heavy sacrifice, or until the necessary outlay is provided for repairs, or until business rights itself, and yields such a profit as will meet all contingencies, or until a sufficient tonnage is "lost" to allow of the supply being brought down to the demand. This last desideratum can hardly happen, if the yearly building is

by unsound and abnormal means fostered into more than keeping pace with losses.

There has been a falling off recently of the more sanguine characters, who have had to look losses in the face and make up calls for repairs, and the idea has lately occurred to others of equalising the cost of their steamers built some time back when prices were high, by purchasing the same class of steamers at the lower prices of the day, apportioning the united cost amongst the whole, thus reducing the cost of each individual steamer; and a rush was in some cases made to carry out the idea before iron again went up in price. Large Companies, and Capitalists (who are quite independent of the class of speculators), knowing individually their co-owners as being men of substance and integrity, can now, by putting down sufficient money for the purpose of shipowning as a business, build good steamers which will pay even at at the late low freights. Iron never was cheaper than recently, and may again fall after the recent rise. Wages are likely to keep about where they are at the present time, particularly in shipbuilders' yards, unless a wild and foolish speculation for building arises. There are vessels afloat now, not suitable for all trades, some bad carriers, others of not a desirable model; the building of new steamers on well-considered plans therefore now gives this advantage, that while the steamer is building, times may go on improving, and by the launching time next year, the best part of the freighting season will be ahead. Steamers built a few years ago at high prices, unless the cost has now been partially written off, and the vessels are in good repair, cannot compete with new ones having the latest improvements, and built and run at a lower cost; as the owners of the former cannot afford to accept the freights which will pay the owners of the latter. This is a serious point for any members of the outside public who own unregistered shares in such ships to bear in mind.

At the present time it is estimated that about 160,000 tons of steamers are being built, of which upwards of 64,000 are on the Clyde. There are, out of this, no doubt, many steamers for existing companies and solid people. At the same time there is doubtless a proportion built on speculation, and though the

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