Salvage

Salvage is the compensation made by the owner of a ship or cargo in respect of services rendered by persons, other than the ship's company, in preserving the ship or cargo from shipwreck, fire, or capture—the perils to which property at sea is peculiarly exposed. By statute, salvage is now also due for the saving of the lives of persons on board British ships. In the earliest maritime codes, such as the laws of Rhodes, Oleron, and Wisby, salvage was recognised; and it is similarly allowed by all modern maritime states. At common law the person who saves goods from loss or imminent peril has a lien upon them, and may retain them till the salvage is paid. Further, if the salvage is performed at sea, or within high and low water mark, the Admiralty Division of the High Court has jurisdiction, and the salvors may enforce their claim by the institution of an action in rem. The Court of Admiralty also takes care of the property pending the issue of the suit, appraises the ship or goods, fixes the sum to be paid in name of salvage, apportions the sum among the salvors or sets of salvors, and, if necessary, may direct a sale of the goods and a division of the proceeds between the salvors and the proprietors. In the case of recapture from an enemy, the rate of salvage is fixed by statute at one-eighth for the royal navy and king's armed ships, and one-sixth for private ships; in other cases, however, the rate is either fixed by agreement between the parties or is left entirely to the discretion of the judge, and varies with such special circumstances as the labour and peril of the salvors, &c. It is provided by statute that all goods saved from shipwreck in the United Kingdom are to be delivered to the Receiver of Wrecks appointed by the Board of Trade; and it is within the power of this official to detain them till satisfaction is made of the salvage, or till security is given for its payment. The crew of a ship are not entitled to salvage or unusual remuneration for any extraordinary efforts they have made in saving her; but when their duty as seamen is over—as by capture—any successful effort thereafter made by them to rescue the ship entitles them to salvage. Salvage Loss, in marine insurance, is a method of adjusting the loss by deducting the proceeds of the sale of the damaged goods from the original value of these goods, as represented by the invoice price. See WRECKS, DERELICT; and H. Newson's Laws of Salvage, Towage, and Pilotage (1886).