Prize Money

The proceeds of the sale of vessels captured. The captures are sent to port and turned over to the prize court, which adjudicates in relation to them, and either declares the capture illegal, or in the other case a U. S. Marshal is authorized to dispose of the property, and the proceeds are awarded by the prize court as follows:

If the prize was of equal force to the vessel engaged in its capture the net proceeds go to the captors; but if of inferior force, one-half of the proceeds go to the captors and the other half to the government. The rules of distribution are as follows:

The commander of the fleet or squadron receives one-twentieth part.

The commander of a division of the fleet or squadron, one-fiftieth part from the moiety due the government, provided there be such moiety due, and if not, then from the amount due the captors. If, however, his vessel is the captor, then he may decide which he will receive, the fiftieth part, or the regular share as commander of the captor; he cannot receive both.

The fleet captain receives one-hundredth part, unless the capture is made by his vessel, in which case he shares in proportion with his officers and crew.

The commander of a single vessel receives one-tenth awarded to the vessel, provided she was at the time of capture under the command of the commanding officer of the fleet or division, and three-twentieths if his vessel was acting independently of the above superior officer.

The remainder of the prize money is awarded to the remaining officers and men on board in proportion to their rates of pay.

All men-o'-war within signal distance of the one making the capture, provided they are in condition to contribute aid if necessary, are entitled to a share in the prize.

Members of the crew absent temporarily are entitled to a share in the prize.

The prize court decides concerning the vessels entitled to prize money.

The Secretary of the Navy decides concerning the persons entitled to prize money.

The Fourth Auditor of the Treasury figures the amount of money due each person according to the foregoing rules, and issues certificates to the persons so entitled after Congress has made an appropriation for said payment.

The prize money awarded to the Government is used exclusively as a fund out of which to pay to naval officers, seamen and marines the pensions to which they are entitled.