The sensing part of the remote-indicating magnetic compass has to be placed where the ship's magnetic effects are minimum, in order that the compass may remain usable under the varying magnetic conditions likely to be experienced on board the ship. In this paper the model of the overall ship's magnetism is built using Vacquier's method frequently used in determining the geomagnetic anomaly, on the assumption that the steel ship generate the magnetic disturbance in the geomagnetic field. It was found that the values of the magnetism observed on board approximate to those of the magnetism calculated from the captioned model, under the condition that the ship's material isominated by the permanent magnetism. And on the basis of the above model, it was feasible to locate the place of the minimum magnetic field by computer calculation.