The Foreign Ship Registry Act was a federal legislation that provided for the admission of foreign-built ships to the American registry.
Legal Repercussions
It provided admission of foreign-built ships to the American registry for foreign trade, making it easier for them to legally hoist the American flag. The bill provided for the survey, measurement, and inspection of such ships, though it did not require American ownership of a majority of stock in corporations applying for American registry, which was a clear violation of international custom and international law. Theoretically, Germany could get American registration, hoist the U.S. flag on its merchant vessels, and avoid the British Blockade. This possibility provoked much British protest; however, the German owners of vessels in American harbors dared not risk losing their property and did not take advantage of the act.