Prize Money

[Grim DeGrim]

I came across this in my read of the capture of Louisbourg in 1745. What happened was that Warren (captain in charge of a fleet of 11) captured Louisburg but then pretend to be French. Of course shops would sail in not knowing yet of the capture. Warren & crew became very rich... Link for their story below. In the interim, thus is how, Prize Money:

Prize Money:

In times of war the British navy, its officers and men, had an extra inducement to take enemy ships and their cargo. Captured ships and their cargo would be brought to a port which had a Court of Admiralty where the matter would be judged and decreed that the ship and cargo were a prize of war and to be sold with the proceeds to be Droits of the Crown, or of the Admiralty; as such, it was to be all given over to those responsible for the capture. The money was "divided into eighths, of which three went to the captain, one to the commander-in-chief, one to the officers, one to the warrant officers, and two to the crew." This system of prize money was long in place and certainly covered the period with which we are concerned about, indeed it was in place for the British during the Second World War. (Oxford Companion to Ships & the Sea.)

Their story: http://www.blupete.com/Hist/NovaScotiaBk1/Part4/Ch14.htm

[Cuthbert Collingwood]

https://en.wikipedia.org/wiki/Prize_money
 

The link above to Wikipedia tallies with my understanding of the Prize Money breakdown. The captain would only receive Three Eighths if operating directly under orders from the Admiralty otherwise one eighth went to the Admiral/Commander who issued his orders.

 

Captains would employ prize agents ashore whose job it was to ,make sure that the ships prize money was paid and indeed records of letters from Nelson survive where he was complaining about not receiving Prize money he believed he was due.  It was expected that a captain took responsibility for seeing all the ships crew received Prize Money due to them,

 

If a captain was out for Prize Money his potential earnings were very much dependant on the station he was sent to. The Carribean was probably the richest pickings followed by the Mediteranian. If you were assigned to the Home station guarding against a French break out and possible invasion it was going to be slim pickings.

There are occasions where captains got lucky and captured exceptional prizes. A lot of country houses aroumd Britain were built on Prize Money.

 

I find it quite interesting that although you were expected to serve for King and Country these institutions had no problem with holding out the prospect of "A nice little earner" to help inspire your patriotic fervour It is not uncommon for the idea of Prize money to have been used on recruiting posters put up by captains looking to attract crew for their ship.

[Lord Hood]

Nelson and Lord St. Vincent had an enormous falling out over prize money that would end up turning into a legal battle that would end up largely unsatisfactory for Nelson. Prize money was indeed one of the reasons that officers and men were lured into the service.