Service of the Department of Commerce was induced to change its rules, making it possible for graduates of the Nautical Schoolships who were 19 years of age to take their examinations for licenses as Third Officers and Third Assistant Engineers at once. It is gratifying to state that all of the graduates of 1917 who were qualified by age successfully passed their examinations and obtained their licenses, and were immediately taken into the merchant marine as officers.

Owing to the conditions of the war and because of the secret nature of the services upon which many of the graduates of the school are now employed, it is impossible this year to prepare an authentic list of their rank and the vessels upon which they are in service, and therefore, this customary appendix has been omitted. However, hundreds of our graduates have been appointed to positions of command since the outbreak of hostilities. This condition also holds good in the list of graduates engaged in marine affairs ashore.

A great and growing number of graduates have enlisted in the Naval Reserve, have won commissions- some the rank of Lieutenant Commander, the highest rank obtainable for a merchant mariner. Among these may be mentioned, with pride, Commander Paul C. Grening, U. S. N. R. F., who was assigned to the German steamship Vaterland, the largest ship in the world, to organize and place the vessel in commission.

During the past summer the recreation pier at the foot of East 24th street, formerly occupied as a winter berth by the Schoolship, was taken over by the naval authorities for use as a store station.

Upon the completion of the summer cruise of 1917 permission was received from the Dock Department of the city of New York to berth at the recreation pier at the foot of West 129th street, a change in location that has proven desirable from every point of view.

Upon arrival at this berth arrangements were made between the Superintendent of the New York State Nautical School and the authorities at Columbia University by which the University granted the New York State Nautical School the use of a large classroom in the Engineering Building and the use of the swimming pool and gymnasium.

In return for these privileges the New York State Nautical School has agreed to admit to its classes in theoretical navigation and seamanship not more than thirty students at present enrolled in the University. These arrangements were approved by the Board, and have been in successful and satisfactory operation since the beginning of the school term on November 1, 1917. The enrollment in the New York State Nautical School is now ninety-one cadets, with nine more candidates passed and accepted, which will bring the total on January 1, 1918, up to the full complement of one hundred. In addition to this over seventy-five additional applications for membership in the school are now on file, and others are coming in daily.

Since the beginning of the school term the cadets have been required to remain upon the schoolship seven nights a week, those in the first conduct grade being granted liberty on Saturday and Sunday afternoons, with two hours church liberty on Sunday forenoons.

The course of work and study is being speeded up, and the mental requirements for admission have been considerably increased.

It seems that at this time of national necessity it would be desirable if all cadets accepted in the school be required to pledge themselves to at least three years of sea service, following their graduation.

More adequate compensation for the members of the crew of the schoolship Newport is again urged and has been asked for in the budget, to meet at least the standard rate of wages. Under existing conditions of pay it is impossible to recruit a competent crew of seafaring men.

The attention of the Legislature is called to the growing necessity for some sort of logical expansion of the activities of the school. The large number of ships under construction and contemplated will require a larger number of officers than will be available, and at this critical period every effort should be made to increase the output of competent, well-trained young Americans, fit for positions as Junior Officers; and increasing the appropriation would make it possible to utilize the upper dock of the recreation pier, foot of West 129th street, in addition to the

schoolship Newport. The cadets, alternating on the pier and ship, and by speeding up the instruction to a war basis, the output could probably be doubled. This expansion has been given careful consideration and is considered perfectly feasible.

The Board of Governors wish to express their thanks and appreciation of the earnest labors of the former Chairman, Commodore J. W. Miller, to the City of New York, through Dock Commissioner R. A. C. Smith, to the Shipping Board, the managers and superintendents of the various steamship lines for their active sympathy and assistance in the work of the school.

The Chairman also wishes to express his thanks and appreciation for the hearty cooperation and assistance rendered by the Board and the officers of the schoolship.

Respectfully submitted,

BOARD OF GOVERNORS, N. Y. S. N. S.

JOHN C. HATZEL,

Chairman.

APPENDIX A

Report of the Superintendent, New York State Nautical School, Schoolship Newport, June 30, 1916, to June 30, 1917

SIR. In accordance with the regulations for the government of the State Nautical School, I have the honor to submit this report of the progress of the Nautical School during the fiscal year ending June 30, 1917.

At the close of the previous year, the Newport was undergoing repairs at the New York Navy Yard, school being suspended as the cadets had been sent to their homes until such time as the ship could accommodate them.

Until August 2, 1916 the ship's deck was being relaid, standing rigging overhauled and renewed and various other operations rendering the ship uninhabitable.

This work had been undertaken since May, 1916.

The cadets of the Newport returned for duty on board in connection with the fitting out of the ship for the practice cruise. On August 2, 1916, when it was intended to proceed at once to Glen Cove, L. I. to begin this training, it proved impossible to secure the services of a sufficient number of experienced men to operate the machinery of the ship. Therefore, our departure was delayed until August 9, 1916. When this difficulty was temporarily overcome, and the Newport proceeded under steam to the above mentioned location to continue the fitting out process and furnish the cadets with the necessary preliminary practice drills with ship sails, boats, etc., to enable them to operate the vessel.

On August 15, 1916, the Newport left Glen Cove, under steam for New London, Conn. arriving the next morning and drills were there continued until August 26, 1916 and another run under power was made to Newport, R. I.

On August 28, 1916, the Newport was inspected by Commodore J. W. Miller, Chairman of the Board of Governors of the School and arrangements were made by the Board for an offshore cruise.

On August 30, 1916, Dr. J. D. Williams, Surgeon of the Newport resigned having received orders for military service and Dr. C. C. Craft was appointed by the Board to fill the vacancy.

While at Newport, R. I., the Massachusetts Training Ship Ranger entered the port. The cadets of the two schools fraternized and were matched against each other in a baseball game and a cutter race, both of which were won by the Newport.

The Newport proceeded to sea on Friday, September 8, 1916 under power bound for Horta, Fayal, Azores, after several delays due to the difficulty in securing employees and instructors for the cadets and the loss of several men, who had proved to be unsatisfactory in character and service. On departure there was ninety-six cadets on board of whom forty-one were in the senior class, and fifty-five in the junior class.

From September 10th to 12th the ship encountered a northeast gale, during which it became necessary to heave to under strong canvas, disconnecting the engines. Although suffering greatly from sea-sickness, the cadets behaved admirably and attempted their duty in a very satisfactory manner. From this time favorable winds were experienced until near the Azores, when calms prevailed and steam was resumed.

On the morning of September 21, 1916, at 1:38 A. M. the ship cast off her propeller and tail shaft while steaming in smooth water, being then in latitude 39° 20' north and longitude 32° 36' west. The remainder of the passage was made by sails, and three days were required to cover the distance into Fayal, during which another gale was experienced and the ship sustained damage to the sails and rigging.

On arrival at Horta and Fayal on September 24, 1916, the ship was warped inside the harbor by the cadets, official calls were exchanged between the commanding officer of the Newport and the civil and military governors of the island, the captain of the port and the commanding officer of the Portuguese gunboat Acor in company with the American consular representative of the port. The courtesies of the port were extended the Newport and offers of assistance were proffered to the ship which were declined as not being imperative. The cadets were granted shore leave whenever conditions permitted and an exhibition baseball game was given by them which was much appreciated by the residents of the island.

The Newport was examined by a diver and declared to be in