The Hawaiian gazette., 1871-11-15
Notes on Marine Insurance.
ITS WORKINGS NEUTRALITY-SUSPICIOUS. AND 81
cURITY OF ANERIcAN COMPANIES.

!
Merchants, where largely eongregated, become
members of what is called a mercantile commuDi-
/ ~. IN which each pay a certain small portion of
his profits, ff his business is goOd,l not enough
TO hamper him in trade. yet sufficient to protect
him from crushing loss should his venture fail.
/ These small contributions TO general fund form
the basis of insurance operations. The protec-
tiCn they afford to legitimate merchants. tends to
increase the number of mercantile transactions at
home. aad to extend the blessings of commerce
to oil parts of the world.
Here, in New York, one Of the features of
trade is the trustworthy, extensive system of
insurance. Marine insurance, in connection with
foreign traffic, first attracts our attention With
out attempting to explore its volumes of Law. or
to expound its technicaIties, general view Of
its operations may be interesting to our readers.
even while its minor details may be perfectly
familiar to some of them.
Where, when, and how marine insurance
originated, the dustsfaiued pages of history do
not clearly reveal. Probably the enterprising
merchants of the twelfth century, in their voyages
on the Mediterranean, were the first to form
general system of marine insurance among them
selves; but, not, the fact exists of perfect
judiciOus, and benefcent system at present. Be
fore the era Of steamships, the large number of
sailing vessels plying between American and
European ports, carrying valuable cargoes, con-
stantly increased the risks Of merchants in
active business, and it became custom for them
to assemble s. on Change" to state their ship
ments from home ports, their value and destina-
tion. On the paymant Of small percentage of
the total value. number of other merchants
would assume the risk, pledging themselves to
refund to the shipper the amount of damage or
loss, if any, and sign their names to the contract
there drawn out So they became underwriters"
or insurers. With the advent of ocean steam
ships, the cargoes reached points of destina-
ton more rapidly, the profits we're returned
sooner. new ventures made, the time Of the risk
was shortened, and business generally augmented
with speed that made the business of under
writing a specially. The underwriters formed
companies, and gave exclusive attention to the
work. Although the merchants at the European
Lloyds occasionally take risks as OF old, and
documents with long lists of signatures are some
times received here, the larger proportion of
marine insurance is transacted by regularly char
tered and Incorporated companies. These COM
panes make accurate records Of all seagoing
vessels their names, dimensions and models
Of what material constructed their tonnage and
draft of water; where, how and by whom built
the names of the owners or regular consiguees
to what port vessels belong and who commands
them, and the place and date where last seen.
From these records, aud from actual surveys
made by their own agents, the insurance com
panes were soon enabled to fix the rates of
premium for insurance all vessels and their
cargoes. To obtain impartial justice alike for
shipowners. underwriters, and shippers, commit
tees were formed, representing the three great
interests in commerce-the ship builders, owners,
and iusurers-who prepared rules for the proper
building and survey of all vessels, the manner in
which cargoes should be slowed, and that of
fixing the rates. The rules so prepared we're
adopted and now govern the work to which they
REFER Every vessel while building is closely
watched by the surveyors or agents of the com
pauies, the timbers examined, the work inspected
and the vessel rated. Great consequence at
taches to the stowage of the cargo and its con-
ditOn. How this affects the risk Of the insurance
company is easily perceived when it is known
that ship overloaded will make slower time
than one less heavily laden, so proOuging the
risk that light cargo on the bottom and heavy |
above it. will make the vessel topheayy, and that |
packages liable to leakage imperl the value Of |
goods slowed beneath them. A curious fact /
reveals itself n the construction of vessels where /
provision has not been made against chemical |
action. For instance, where ship has been built |
with iron fastenings, and afterwards sheathed
with copper to protect the hull from worms, slow
galvanc action is generated by the contact of
the two metals, and results 10 converting the
ship-into a medium quality of plumbago. Then,
as the full-rgged ship heavily ireighted, goes
plungiug through the waves of the Atlantic, held
together it might be said by ead-pencils the
probable effect Of severe storm on both ship
and cargo can well be imagined.
uo eieCHlS beiegIdpui WIN us 5uO-Watlue
cables, gave new impulse to marine insurance,
enabling the company to whom large risks were
offered to re-insure part Of it rapidly with other
solvent companies, so dividing the actual risks
they were responsible for to the shippers. An
instance Of this kind is told Of one of the leading
to whom an enormous risk or line was
given on shipment Of gold by one vessel.
Holding as much as they deemed prudent, the
company gave out other portions Of the risk,
until every solvent company in Boston, Phiadel-
ph!a, New York, Baltimore, Mobile, and New
Orleans had been booked and the original COM
pany telegpphed to England the balance of the |
risk, amounting to eI3OOO. The London CON- {
panies we're astonished, and at first refused to I
believe that any American company could get
such large risk. They we're not aware Of the
immense business done here in insurance. How T
aver, when the letters from this side reached a
hem, the London company gladly assumed their d
portion, and have thought better Of American q
enterprise since. That was not the only time {
America surprised Great Britain A few months c
go the English uoyds posted the loss Of GER a
ain American ship which had sailed from an 5
A rnariean norf for Tiva-,ool -. - - L