AMERICAN CLASSIFICATION OF AMERICAN VESSELS. 97 



outside of this country, caused its power and influence to parallel the downward tendency of 

 American shipping. In the meantime foreign classification societies, from large and ex- 

 tended experience, had so built up their staffs of advisers and sun^eyors, had so revised their 

 rules and broadened their activities in all phases relating to building, insuring and salvaging 

 vessels, that the American shipowners found their interests best served by building under for- 

 eign classification rules. This tendency became so pronounced that, prior to the Shipping 

 Board assuming control of the building facilities of this coimtry, 96 per cent of the United 

 States seagoing vessels was built under the rules of foreign classification societies. There- 

 fore, in 1915, the American Bureau found it necessary to reorganize and to consider the ad- 

 visability of making connection with a foreign registration society in order to enlarge its oper- 

 ations and usefulness. 



DECLINE OF AMERICAN SHIPPING. 



Before entering further upon the history of the Bureau, it may be well to allude briefly 

 to some of the causes of decline of American shipping and its reaction upon shipbuilding in 

 the United States. 



First and foremost of the reasons was the withdrawal of the discriminatory duties en- 

 forced by the Government in favor of American bottoms. This legislation had been so in- 

 strumental in building up the American marine that at one period American vessels car- 

 ried by far the larger part of the world's commerce. Another cause of the downfall of the 

 American merchant marine was the entering into of treaties which, to say the least, placed 

 American shipping at a decided disadvantage with the carriers of other nations. The 

 result was that little interest was taken by Congress in furthering the interests of the 

 shipping of the United States from before the Civil War until the beginning of the Great 

 War, the only aid extended being in the shape of mail-carrying subsidies. The shipbuild- 

 ing interests naturally followed the decline in shipping. The good effect of discriminating 

 duties in the past may well be closely studied in connection with the enforcement of recent 

 legislation. Another feature was the development of internal transportation facilities which 

 greatly influenced and held in financial subjection the natural development of the United 

 State as a shipping power. 



This influence is to be fotmd in the rapid construction of the railway systems of this 

 country. We have a tremendous area whose development depended upon means of commu- 

 nication one part with the other. This led to the building of great transcontinental railways, 

 as well as lines connecting the northern and southern portions of our country. This and other 

 necessary internal developments absorbed the financial energies ofthe country, and, while 

 vast sums of money were raised and expended in the building of great railways, shipping, 

 being of greater risk and its future to a great degree dependent upon congressional action, 

 was not looked upon with favor as an investment nor given the consideration its importance 

 demanded, by the financial powers of the country. 



REORGANIZATION. 



By the year 1915, or the second year of the Great War, shipbuilding in the United States 

 becoming much more active, the American Bureau of Shipping, through its board of mana- 

 gers, called a special meeting for the purpose of considering the reorganization of the Bureau, 

 of enlarging its usefulness by establishing faithful and accurate classification and register of 

 mercantile shipping, and to aid in developing the merchant marine of the United States of 

 America. 



