Vickipedia

PRIZE, PRIZE-MONEY, terms having reference to property captured from an enemy, or to enemy’s property captured from a neutral in time of war. The circumstances under which such capture is justifiable are stated under capture, as regards naval operations; military prize and its distribution to the army are described under BOOTY. It remains only, therefore, to notice the procedure taken in respect to vessels and property captured by the navy. On a ship being taken, she must be sent to a port belonging to the capturing power, where the Court of Admiralty,on full evidence, adjudicates whether she be lawful prize or not. If the decision be affirmative, the prize is then sold; or if a ship-of-war, (a certain allowance per gun is granted by the state. The produce of the sale or grant is lodged in the hands of the Accountant-general of the Navy, for distribution to the officers and men who assisted at the capture. The net produce of the sale or grant is first divided rateably among any ships (if there be more than one) concerned in the capture. The share of each ship is then divided into eight equal parts. If she were employed under the orders of a flag-officer, he gets one-eighth, and the captain two-eighths; if not, the captain has three-eighths; one-eighth is divided among the lieutenants and officers of corresponding relative rank; one-eighth is shared by the junior commissioned officers and warrant officers; one-eighth goes to the midshipmen and petty officers; and the remaining two-eighths among the seamen, marines,and boys.