eration by this division. These warehouses, in accordance with the statute, are of several classes, by reason of the use for which they are employed. The safe-keeping of the goods, a compliance with the warehousing laws, and the proper transaction of the business within the purpose of the statute creating the warehouse system, are secured by a bond, the penalty of which, as well as the general form, is prescribed by regulations of the Secretary of the Treasury.

393. The Customs Division gives attention also to the system of bonded routes, and to the bonds required from common carriers to secure the safety and proper delivery of bonded goods intrusted to them for transportation. To this end, it has the designation of the common carriers who, under sufficient security and regulations designed to protect the revenue from fraud, are permitted to transport goods in bond from one district to another; from one port in the United States, through adjacent foreign dominions, to another port in the United States; and from the port of entry in the United States of goods destined on arrival for immediate transportation and exportation to Canada. It has also the charge of the enforcement of the regula tions prescribed for carrying this system of transportation into effect. It is upon inquiry constantly as to whether the goods transported are all properly received at the port of destination, and is necessarily engaged frequently in investigating cases which may arise of alleged frauds or irregularities on the part of the designated carriers or their employees.

394. This division has consideration of cases involving errors in invoices and entries, refund and abatement of duties, drawback of customs duties on articles manufactured in the United States out of imported material; also consideration of all questions arising upon the construction of the customs laws, and the general regulations thereun

der, in regard to the entry, appraisal, and delivery of merchandise, and payment of duties thereon. It carries on correspondence, through the Department of State, with consular officers, in regard to dutiable values, invoices, &c., and has, indirectly, a supervision of appraisers in securing uniformity in the valuation of dutiable merchandise at the various ports. It has supervision also of the seal fisheries in Alaska, and of such other matters in that portion of our territory as devolve by law upon the Secretary of the Treasury.

395. This division is also charged with matters relating to the compromise, under the general powers given the Secretary of the Treasury by section 3469 of the Revised Statutes, of cases arising from the customs revenue laws.

It aids the Secretary in his general supervision of the numerous customs districts and the transactions of customs officers; of the organization of the clerical and official force at the custom-houses, the mode of transacting business therein, as to blanks and forms of books, reports, and returns to be used. In a word, it is through this division, to a large extent, that the immense interests of the country, in its sources of revenue from customs, receive control and guidance.

IV. DIVISION OF INTERNAL REVENUE AND NAVIGATION.

396. The Secretary of the Treasury relies upon this division of his office in all matters affecting the administration of the navigation laws, both for foreign and domestic commerce, including those relating to the security and protection of passengers and of seamen on both steam and sailing vessels. To this division are referred all questions regarding the registering and licensing of the different. classes of vessels.

397. Vessels of the United States entitled to privileges and immunities as such over foreign or undocumented vessels, and to carry the flag of the nation, are those only which have been duly registered, and continue to be wholly owned and commanded by citizens of the United States.

398. Vessels so entitled to registry or license are those of the following classes, wholly owned by citizens of the United States, viz.:

1. Those built within the United States, and which have not been sold to a foreign citizen or subject after being once documented.

2. Those captured in war to which the United States is a party, by a citizen or by citizens thereof, lawfully condemned as prize.

3. Those adjudged to be forfeited for a breach of the laws of the United States.

4. Those built in a foreign country, wrecked within the waters of the United States, purchased and repaired by citizens of the United States, at a cost equal to three-fourths of the cost of the vessel when repaired.

Vessels of these several classes are prohibited a register by law, or the benefit thereof, if owned in whole or in part by a citizen of the United States who usually resides in a foreign country, during the continuance of such residence, unless such citizen is a consul of the United States, or an agent for or a partner of a mercantile house, consisting of United States citizens, carrying on trade within the United States.

Also if so owned by a naturalized citizen of the United States residing for more than a year in the country from which he originated, or for more than two years in any foreign country, unless he be a consul or other public agent of the United States; also if, having been recorded or registered as a vessel of the United States pursuant to law, the

same was licensed or authorized to sail under a foreign flag and the protection of a foreign government during the existence of the rebellion of 1861.

399. Marine documents, consisting of certificates of registry, enrollment, and license, are issued by the collector of the port upon compliance with the requirements of law and regulations. Severe penalties-such as the forfeiture of the vessel, her tackle, &c., or their value-follow any false representations or fraudulent appliance in obtaining these papers. All business matters connected with the registry or licensing of these vessels are transacted by the collector of the port to which the same belong, under printed regulations and forms issued by the Secretary of the Treasury; and these regulations and forms are construed, explained, and modified from time to time, as occasion may require, by the Navigation Division.

Questions are constantly arising under these regulations and the laws relating to these vessels, and are as constantly referred by the Secretary for the consideration and decision of that division.

400. Questions also arise in the different ports, and are likewise there referred, regarding the entry and clearance of vessels, the recording of bills of sale, mortgages, and hypothecation of vessels.

401. Every vessel arriving within a port of entry from a foreign port must, within twenty-four hours after arrival, report to the chief officer of customs, and within forty-eight hours thereafter the master, &c., must make the entry required by law, accompanied by a manifest of the cargo, in proper form and duly sworn to, and deposit the ship's papers. If the vessel is of the United States, the crew list must at the same time be exhibited, and the crew must be accounted for.

402. The masters of all vessels leaving for foreign

ports, and with some exceptions leaving coastwise, must obtain from the collector of the port a clearance, after first delivering a true manifest of the cargo, properly verified and in due form, a full descriptive list of the ship's company, and a bond for the production of the crew, if on a foreign voyage or engaged in the whale fisheries. Severe penalties are imposed by law upon the master of any vessel leaving without obtaining the proper clearance from the collector.

403. All the incidents attending entry and clearance of vessels, and the liability of the same or the master to the penalties incurred under the statute for fraud, irregularity, neglect, or avoidance, as regards a due observance of law, come properly before this division, in some form or other, for consideration.

404. This division also has charge of matters in relation to the carriage of passengers in emigrant vessels, and of those affecting steerage passengers, their rights, protection, and comfort, on the great ocean steamers; of matters pertaining to the American merchant marine in foreign ports, the care of destitute seamen in those ports, and their transportation home.

In regard to this last subject, it receives reports from our consuls abroad of seamen discharged in foreign ports. For the protection of the seaman in such a case, the consul is required to demand from the master of the vessel three months' extra pay on account of each seaman so discharged, and in case of refusal to report the facts, so that collection may be made by the proper authorities, from the owners of the vessel, at the port to which she belongs.

405. This division gives its attention also to matters connected with the collection of tax on tonnage of vessels arriving in the ports of the United States, and to the re