Security Measures
Security Measures

 

... The gold which arrived yesterday on the Lusitania was distributed in Wall Street yesterday, but the consignments to some of the banks were not brought to the vaults until late in the day. Attention was directed yesterday to the fact that in the gold brought by the Lusitania was a lot of $2,100,000 consigned to the Assistant Treasurer of the United States at New York. For a time Wall Street got the impression that the Government itself had quietly gone into the gold importing business at the height of the recent excitement in Wall Street. It was quickly made known that the consignment to the Assistant Treasurer was the result of an error on the part of the foreign representative of one of the houses which had engaged gold abroad. The gold was imported by a private firm and ought to have been sent direct [consigned] to the firm.1

N. Y. Times, November 9, 07, 2:3

The articles describing the LUSITANIA's gold cargo became public information only after the gold was delivered.

Fraud and corruption were also other security considerations:


New York Customs House, circa 1900s

...a number of men have been dismissed from the service of the Customs House at the port of New York. ...It was discovered that the frauds in the New York Customs House were discovered first by government officials in the regular investigations that are always being carried on in the Government institutions. Other ports, said Mr Reynolds, are being investigated, too, but that fact does not attract so much attention because the New York Custom House is by far the largest.

Journal of Commerce, May 12, 09, 1:4

For this potential and often tangible reason, steamship companies had the latitude to reroute shipments once they had cleared Customs and been placed upon the "officially" transporting vessel.

In a rarely reported re-consignment...

Another export movement in gold was started yesterday by the engagement of ... gold bars at the Assay Office for shipment to Plymouth [England], although the metal, which is to be put aboard a North German Lloyd liner to-day, may be continued on its way to Bremen. The gold is taken by the banking house of Muller, Schall & Co. ...

They explained that the transaction was made on orders from their English house, and that they did not know definitely for whom the metal was intended. ... As the gold now stands on the ship's papers it is consigned to England with the privilege of reconsignment to Germany. [emphasis supplied] ...

New York Times, August 20, 07, 11:2

Vessel destinations and ports of call could also be changed even after the vessel departed through the use of sealed envelope instructions or wireless.

Relating to Captain Sealby's responsibility aboard the REPUBLIC...

The rule in the marine world that the captain of the ship is supreme commander of his vessel when he leaves port will not be modified by the fact that the wireless system keeps him in constant communication with officials of the company. Speaking of this new question, Vice President Franklin of the White Star Company said yesterday: 'The ship's captain will ever be sole and absolute in authority in the navigation of his vessel, no matter whether he is in communication by wireless with the home offices or not. We could direct the captain to change his port of destination by wireless or order some change with respect to preparations to land baggage [emphasis supplied], but as to navigation, that is a matter for the captain. We might suggest some move in the case of accident, but the captain has full right to adopt or disregard the suggestion as he sees fit.'...

Journal of Commerce, January 28, 09, 1:5

Customs' reports were obligated to be accurate, in essence, in their reporting requirements as to only amount and composition of exports and not with respect to specific shipping vessels or their destinations.

The previously described information, confirmed and complemented by governmental reports [discussed later] enabled a complete reconstruction of gold market and export activity for the month of January, 1909 (Click), for the year 1909, and for the five year period both before and after 1909.

FOOTNOTES

1Gold coin for export would be drawn from the Sub-Treasury, under the control of the Assistant Treasurer of New York. It would be a natural assumption for a European shipper that gold going to the United States should be consigned to the Assistant Treasurer as well. Gold, however, was more correctly consigned to the individual banking houses but delivered to the Assay Office or Sub-Treasury for inspection and distribution.