The Sun.
London, England, 1824-05-19 00:00:00

LLOYD'S COFFEE-HOUSE.

Yesterday a raeeting of the Subscribers was
convened, pursuant to notice duly given, to deliberate upori
what steps were to be taken in consequence of the introduction
of a Bill into Parliament for the incorporation of a Coinpan?
to effect Marine Insurances, to be called the " Mutual Mariaj
Insurance Company."
B. SHAW, Esq., Chairman of the Committee, opened the,
business. He would first proceed to take the opinion of 010
proprietors upnn those matters which were not likely to awaken
discussion. He would ask the Meeting to confirm the resolu-
tions of the last General Meeting; the first for subscribing a
grant of 2001. to the loyal National Institution for preserving
lire from the dangers of shipwreck"; 'the second was a vote of
1051. to another society.

The resolutions were severally adopted.
The CHAIRMAN then proceeded to the business of the day' i
The committee had notice from time to time, during some con-
siderable time past, of various attempts which were making to -
brinfs about a very material alteration in the marine insurance
laws of the country. They did not think it advisable to talc°
any active steps together, or to convene the general body in-
consequence, unless some substantial proposition of the kind .
should publicly call for it. So soon, however, as notice was
given to the committee by Mr. Buxton, that it was his inters-
Lion to to obtain leave to brine. in a Bill for the alteration of so
much of the 6 Gco 1. as related' to the two Marine Insuranee
Companies—(hy that Act there were restrictions put upon
all persons from effecting marine insurances, except the under-.
writers and the other Company— the Bill of which notice was
given was to take away the exclusive benefit secured by the
charters to those Companies)--ethe Committee then called the
general body to consider what ought to be done. The come
mitte had deputed two Members to wait upon Mr. Huskisson,
who explained to that Gentleman the fallacy of the object of
the bill. It would be vain, however, for him to digitise front
the house that those Gentlemen were assured by Mr. Husain-
son that Government had a strong feeling of consent towards
the bill, because' the restrictions in the old act militated strong-
ly against that free trade which was the grand object of the
Administration at the preSent time. It was observed that the'
happiest consequences had resulted from the opening of the
East India trade, and that a vast accession had taken plac_
in consequence to the trade or the whole kingdom' by open-
ing a new path of industry to private individuals. The =
mittee represented to 111 r. Huskisson, that however plausible
in theory, this was a case directly contrary in practice. The.
transactions of this house were the effect of individual en'
ergy : those of a joint stock company, on the contrary, we were
effected ty a few individuals. 'Mr. Huskisson remarked that
Government had resolved not to allow one of the many joint'
stock companies now collecting together to be incorporated.---
The Lord Chancellor, ever watchful for the public interests,
had declared, that in every Bill brought in for enabling these
associations to sue or be sued in the name of. their Secretary
or Treasurer, if there was not a clause inserted for giving
the • power to creditors, after judgment against the Treasurer.
to proceed against the body or property of every individual.
proprietor, he would take care that no such Bill should pa
the House of Lords. Another remark which he would make
was this—it was supposed by some who subscribed their names.
to these joint stock companies, that they were only respon-
sible to the extent of their profits and the capital embarked.
He had taken legal opinions from two eminent Counsel,
from whom he learnt, that if a party once gave his name
to the list of a joint stock company, it was next to impossible'
for him to draw it again—that a dormant partner was only li-
able up to the conclusion of the partnership transactions ; but in
the case of a joint-stock company, the names were published'
and those parties were no longer in the condition of dormant
partners, nor could they ever be released from their joint respon-
sibility until the publication in the Gazette of their dissolution,
accompanied with the signature of every one of the partners, au-
thorising the receding party to withdraw.' He paid a tribute of
gratitude and respect to the memory of their late chairman, and
complained of the misrepresentations which had been made
through ignorance of the mode of doing business at that house-
One Gent. had said, that if an individual living in the country,
wished to effect an insurance, he must remit it to an agent or at-
torney in town, who then handed it to a broker, who charged for.
his service '25 per cent. That Gent. said that he could not see why
there should be restrictions on insurances, and no where else---
that he could insure his life, his house, and even his ship while
in port, whenever he might choose ; but while she was out $t
sea, he was compelled to insure her at Lloyd's, or at one of the
two companies. He would answer by another proposition to'
be put to the very same person. The baker bought his flour.
where he liked, and the butcher his meat : what reason for hin-
dering the publican from doing the same with his beer ? This
might be called personal allusion ; but those who had glass wily
(lows should never be eager to throw stones. As to the imroese
diate subject, he scarcely knew' where to begin, or how to pro;.
teed. Had it not been for the spirit, talents, application, an. -
merits of the individual subscribers of Lloyd's, the science 0 -
underwriting could never have bee)i known—it would never
have been so highly perfected as it was in this country, nor
would the system have been so finished in all. its parts.ln-
surance by underwriting was of considerable antiquity. The.
earliest mention of such a body -in England which ho could
find was of the date of Queen Elizabeth's reign, about the year
1600 ; and they were spoken of as transacting their haziness isle
a little court in Lombard-street. In the year 1720, when into
ranee companies were springing up in all kinds of mushrocars'
forms, and every street and alley had insurance companies'
the Government found it expedient to put some restraint upon
them. Charters were granted to two companies, the rights of
individuals were restricted, and an exclusive right to effects
marine insurances secured to the companies. The talent aril
power of the company at Lloyd's had been able hitherto to
defeat all competition : but what would be the consequence if
they were now called to contend with joint stock companies,
established by the most wealthy individuals ? He complained
that these companies, being only called on to deposit one-tenth,
gave out the amount of their capital to the world, and caused it
to be believed by persons at a distance, that insurances would
be secured on the proportion of the whole. How far all this
might affect the individual subscribers of Lloyd's was a minor
question. The same talents and power exerted in another chart-.
net might be as profitable to them : but what was to become of
that system of enlightened and active agency which they had .
fixed in every quarter of the globe, in every naval port, -in evert
considerable harbour throughout the world, if the resources of
this house should be withdrawn by the competition of joint stock
companies ? There was a fact of importance which ought to be
known. In the course of last year, there were three insurance
companies in Paris, which'were obliged to give up the business,
and they remitted several policies to this house to be ransomed.
—lt was with this as .with other things—money got money*
trade got trade, and insurances increased insurances: The indi-,
vidual exertion and emulation here was far more active than the
agency of one or two men out of a company of 500 could be-
lle communication of particular and tropical knowledge be-
tween man and man was of great advantage to their transactions.
He thought the invasion of their charter was a particular hard-
ship ; for to what could they trust, if not to rights secured to
them, first by sign manual of the King, and secondly, by the
solemn ratification of an Act of Parliament ? There were the
highest legal authorities, including Mr. Spencer Perceval and
Lord Ellenborough, against that violation. After some fur-
ther observations upon the justice and expediency of the inten-
tions of Government with respect to the• Company, he return-
ed to the proceedings of the Committee. Mr. Huskisson':
opinion seemed to be so far shaken by the Gentlemen of the
Deputation, that he advised them to present a memorial ; which
had been accordingly prepared; but as it could not be read
without the danger of making it public, and as it was open to
the perusal of 111 embers, it had better not be read.
Mr. DEWAR approved of the wisdom of Administration in
seeking to enfranchise the trade of the country; but the reso-
lution of allowing the Bill for the mutual Marine Insuranee to
pass was in hostility to that determination, because it went to
establish moreof monopoly. He expatiated upon the inconvenien-
ces in effecting marine insurances by large joint stock companiee,
and the advantage of competition among the members in the
room to the mercantile world. He argued against the futile
pretences of those who said that it was difficult, expensive, and
uncertain to effect insurances at Lloyd's. They talked of meet•
ing on fairterms; but on the fairest terms upon whits; they could
meet, the subscribers, 1,600 in number, would i: to raise
1,5001. each, to form a sufficient capital. He observed upon the
great number of persons,4,ooo in all,whoedepencled upon the bu-
siness of the room for the means of support for themselves and fa-
milies. He also pointed out the lose which must accrue, first iii
the way of business, and then as to the comforts enjoyed by the
families of the subscriber's themselves, by the division of that
business among insurance-offices, which would be spread all
over the kingdom.. He concluded by moving a series of reso-
lutions, pursuant to the tenour of his speech, which may be
seen in the advertisement.

Mr. CARRUT hEll s and Mr. BROWN severally seconded two
of the resolutions 'with appropriate remarks. The latter Gentle-
man observed, that these Joint stock companies were any thing
but eiamples of free and open competition ; for they all began
by requiring their subscribers to insure in their own offices.
The Resolutions were then put, and carried, as were others of
acknowledgment for the zealous and able services of the Com-
mittee, and the eZcellent'conduct of the Chairman on this oc-
casion.

The CHAIRMAN returned thanks, and adjourned the meet-
mg.

Mr. MURRAY has received from the Admiralty the first pre-
mium price of 3001. for a Chronometer, which in one year gamed
only 1 min. 18 sec. from its rate, and which is destined for
special service.

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