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1iC THE MARINE REVIEW DEVOTED TO MARINE ENGINEERING, SHIP BUILDING AND ALLIED INDUSTRIES Published Monthly by The Penton Publishing Company Penton Building, Cleveland. O - - - - +o 1521-23 Lutton Blag. CEO NNATI - - - - - 503 Mercantile Library Bldg. NEW YORK - - - - - - 503-4 West Street Bldg. PITTSBURGH - - = - - 2148-49 Oliver Bldg. S ~ 501 Metropolitan Bank Bldg. WASHINGTON, D.C. eater BIRMINGHAM, ENG. : 2 & Subscription, $2 delivered free anywhere in the world.. Single copies, 20 cents. Back numbers over three months, 50 cents. Change of advertising copy must reach this office on or before the first of each month. The Cleveland News Co. will supply the trade with THE MARINE REVIEW through the regular channels of the American News Co. ; European Agents, The International News Company, Breams Building, . Chancery Lane, London, E. C., England. ; Entered at the Post Office at 'Cleveland, Ohio, as Second Class Matter. (Copyright 1914, by Penton Publishing Company) March, 1914 a omen ------ vereseomen so ne ern oe Importing Ships Material Free The tariff act of Oct. 3, 1913, contains the follow- ing provision in relation to the admission into the United States of material intended for use in ship construction free, the exact language being: J. Subsection 5. That all materials of foreign production which may be necessary for the construction of naval vessels or other ves- sels of the United States, vessels built in the United States for foreign account and ownership, or for the purpose of being employed in the foreign or domestic trade, and all such materials necessary for the building of their machinery, and all articles necessary for their outfit and equipment, may be imported in bond under such regulations as the secretary of the treasury may prescribe; and upon proof that such materials have been used for such purpose no duties. shall be paid thereon. J. - subsection 6. for the repair of naval vessels of, or other vessels owned or used by, the United States and vessels now or hereafter registered under the laws of the United States, may be withdrawn from bonded warehouses free of duty, under such regulations as the secretary of the treasury may prescribe. This is practically the same clause that was placed as a rider into the Panama canal act and which was the subject of varied interpretations. The original ruling of the treasury department was that under its provisions even completed engines and boilers could be admitted, not alone for original installation, but for replacement as well. This was a very sweeping in- terpretation and was too much for the Taft adminis- tration and the president himself took a hand in it with the result that another interpretation was forth- coming which said that completed machinery or. fin- ished parts which had only to be assembled to become 'complete could not be admitted. There was plenty of room for argument left, how- ever, after the second interpretation was published so that no one knew exactly where he was at. Now the treasury department is out with an inter- THE MARINE REVIEW That all articles of foreign production needed March, 1914 areauon of the tariff act which, of course, supersedes the Panama canal. | The new interpretation defines the word "materials" as including any imported merchandise which is syit- able and intended for use in the construction of a hull of a vessel or of the machinery of a vessel and to be incorporated therein, either after having undergone a process of manufacture subsequent to importation or in its condition as imported. This would include raw materials to be worked up into the finished state in which they will enter into the hull or machinery of. the vessel and paints, forgings, castings, nuts, screws, bolts, steel plates and other things which though complete articles are useful as parts in the construction of such hull or machinery. Inasmuch as in Subsection 5, express provision is made for materials for the construction of (1) ves- sels, (2) machinery, and (3) for articles for their outfit and equipment, such terms so far as the inter- pretation of Subsection 5 is concerned are defined as follows: - Vessel is defined as referring to the hull and every- thing permanently included therein or attached thereto except the machinery as hereinafter defined. Machinery is defined as the engines, boilers and other propelling mechanism in the vessel and includes only such mechanism as is peculiar to vessels. -- Outfit and equipment is defined as including porta- ble articles necessary or appropriate for the naviga- tion, operation or maintenance of a vessel, but not permanently incorporated in, or permanently attached to its hull or propelling machinery, and not constitut- ing consumable supplies. The term includes, there- fore, anchors, chains, tackle, boats, repair parts, life saving apparatus, nautical instruments, signal lights, lamps, furniture, carpets, table linen, tableware, bed- ding, arms and munitions. The interpretation says that in Subsection 6, relating to repairs, no distinction is made between the vessel and its machinery. The term vessel in Subsec- tion 6 must therefore be taken as a whole with all permanent attachments necessary or useful to accomp- lish the object for which it is designed. All merchan- dise may therefore be admitted under this subsection which is suitable and intended for repair of the hull, or for the repair or replacement of permanent attach- ments to the vessel, including its machinery, and which are necessary or useful in the navigation, operation or maintenance of the vessel. This will include not only so-called raw materials, but in general completed articles, including machinery, either propelling or auxiliary, which are to be permanently attached to the hull of the vessel and which serve the purpose for which the vessel was designed. The interpretation holds that the following materials and articles are excluded from Subsection 5: Com- pleted machinery or mechanism for the propulsion of a vessel; materials intended to be manufactured into articles of outfit or equipment; articles to be used in the renewal or replacement of articles of the first or