The chairman of the inquiry, Senator William Alden Smith, wanted to gather accounts from passengers and crew while the events were still fresh in their minds. Smith also needed to subpoena the British citizens while they were still on American soil. This prevented all surviving passengers and crew from returning to the UK before the American inquiry, which lasted until 25 May, was completed. The British press condemned Smith as an opportunist, insensitively forcing an enquiry as a means of gaining political prestige and seizing "his moment to stand on the world stage". Already, however, he had a reputation as a campaigner for safety on the railroads of the U.S. and he wanted to investigate any possible malpractices by railroad tycoon J. P. Morgan, Titanic's ultimate owner.
Lord Mersey was appointed to head the British Board of Trade's inquiry into the disaster. The British inquiry took place between 2 May and 3 July. Each inquiry took testimony from both passengers and crew of Titanic, crew members of Leyland Line's Californian, Captain Arthur Rostron of Carpathia and other experts.
The investigations found that many safety rules were simply out of date, and new laws were recommended. Numerous safety improvements for ocean-going vessels were implemented, including improved hull and bulkhead design, access throughout the ship for egress of passengers, lifeboat requirements, improved life-vest design, the holding of safety drills, better passenger notification, radio communications laws, etc. The investigators also learned that Titanic had sufficient lifeboat space for all first-class passengers, but not for the lower classes. In fact, most third class passengers had no idea where the lifeboats were, much less any way of getting up to the higher decks where the lifeboats were stowed. U.S. immigration regulations required complete isolation of third class passengers and the route to the boat deck, through the higher classes of accommodation, was somewhat tortuous as a result. A third-class steward, John Hart, had to guide E-deck passengers, in two trips, to the boat deck but many were left behind.
SS Californian inquiry
Both inquiries into the disaster found that the SS Californian and her captain, Stanley Lord, failed to give proper assistance to Titanic. Testimony before the inquiry revealed that at 22:10, Californian observed the lights of a ship to the south; it was later agreed between Captain Lord and Third Officer C.V. Groves (who had relieved Lord of duty at 22:10) that this was a passenger liner. Californian had warned the ship by radio of the pack ice because of which Californian had stopped for the night, but was violently rebuked by Titanic's senior wireless operator, Jack Phillips. At 23:50, the officer had watched this ship's lights flash out, as if the ship had shut down or turned sharply, and that the port light was now observed. Morse light signals to the ship, upon Lord's order, occurred five times between 23:30 and 01:00, but were not acknowledged. (In testimony, it was stated that Californian's Morse lamp had a range of about four miles (6 km), so could not have been seen from Titanic.)Captain Lord had retired at 23:30; however, Second Officer Herbert Stone, now on duty, notified Lord at 01:15 that the ship had fired a rocket, followed by four more. Lord wanted to know if they were company signals, that is, coloured flares used for identification. Stone said that he did not know and that the rockets were all white. Captain Lord instructed the crew to continue to signal the other vessel with the Morse lamp, and went back to sleep. Three more rockets were observed at 01:50 and Stone noted that the ship looked strange in the water, as if she were listing. At 02:15, Lord was notified that the ship could no longer be seen. Lord asked again if the lights had had any colours in them, and he was informed that they were all white.
Californian eventually responded. At 05:30, Chief Officer George Stewart awakened wireless operator Cyril Furmstone Evans, informed him that rockets had been seen during the night, and asked that he try to communicate with any ships. Frankfurt notified the operator of Titanic's loss, Captain Lord was notified, and the ship set out for assistance.
The inquiries found that Californian was much closer to Titanic than the 19.5 miles (31.4 km) that Captain Lord had believed and that Lord should have awakened the wireless operator after the rockets were first reported to him, and thus could have acted to prevent loss of life.
In 1990, following the discovery of the wreck, the Marine Accident Investigation Branch of the British Department of Transport re-opened the inquiry to review the evidence relating to Californian. Its report of 1992 concluded that Californian was farther from Titanic than the earlier British inquiry had found, and that the distress rockets, but not Titanic herself, would have been visible from Californian.
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