New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-05-14
THE GENEVA AWARD.

Mr. KDMUNDs's TRICK ON THE INSURANCE COMPA-
NIEs-THE LAW OF THE CASE OPINIONS OF
REvERDY JOHNSON AND WILLIAM NJ. EvAR1s.
The trick by which Senator Edmunds sue
ceeded forcing through the bill concerning the Ala
bama Indemnity Fund, in such form TO deprive tine
underwriters Of part OF It, gives special interest 10
the elaborate legal argument in favor OF the right OF the
insurance companies which appeared only day OF two
before in The baltimore Gazette. and which mas
been attributed TO the Hon. Reyerdy Johnson
1t is known that Mr.. Eyarts takes suDstdn-
TALLY the same ground, but there will be mar
critics ready 20 that this is due 10 the fact as
he has employed the insurance COM
panes. The thing cannot be alleged OF MI Johh
son, who has interest whatever in the matter The
essential point Of The Baltimore Ga;ees article Is as
follows:
The final award Of s5 100000 TO the United States was
exclusively in discharge OF the obligation when the
British Government was ad(udged 10 De uhuer 70 ,he
demnlfy citizens for the losses sustained ~ we
the Florida and toe Shenandoah, the only three
Confederate cruisers whose warlike presence on to
attributed to the negligence OF Great Britain,
In estimating this sum all the losses taken into
consideration, including those which had been cOyerea
in tbe aggregate amount, what sup
posed 10 be the actual expenditure of the United
cruisers ana 10 protect American commerce from their
depredatons. The money was paid over without delay
the British Government and people acqulesclng Win
becoming grace in the decision against them ana
1ppSongS tlitb be- our Congress among all
the beneaciares entitled TO the fund We
can well imagine the feeling OF contempt when VIII
very Justly ne exhibited IN England. and when, we
trust. viii ind expression in all our own leading jour
mails for effort being made 10 withhold from the
underwriters who have paid the losses TO the original
owners OF captured SHIPS and cargOes the snare Oh n
entitled
In every aduiicated in either country and /. by
elementary writer the law of insurance II Is
held that. where property Is yaHdy aDindoleu 10y n
against, the underwater az once becomes tne O".a,
Philips in his work vol g page 4l9 says me eeet
abandonment Is the subrOgaton Of the Insurers 10
the property o the assured IN me subject lhshreu. m
United states Supreme Court expresses the same view IN
the case Of tine Chesapeake Insurance company akt.
stark. reported sixth Cranch, PAGE 272 IN
which Cfiaf,Iustice Marshall said: where the
m the place OF tue assured" Even IN the case where
cargo injured by collision in consequence OF
pays the loss, Is entitled to stand IN the place
OF the assured so as u give nun tae HsH'
ding vessel the amount be has been compelled TO pay
the assured This Is Laid down IA ADVANTAGEOUS lA.i,
guage PAGE OF the textbook above referred
TO- and the author cites IN his note the decision OF ne
supreme Court IN tae 1:na FIRE a., Insurance nee
Phillips IS equally clear IN maintaining the risht
ubrogatou in where tho entire value Of the
property Insured lost the assured aud paid
him by the underwater. memorable case IN point
Is thai OF an insurance effected upon the lie Of the
younger Pit, 70 secure debt due by him TO the As
sured. After Mr. Puts death the British Par
Lament made an apDroprltion OF money 10 nav hIs
debts, and H. uicay held, IA the case referred TO-
that the underwater entitled TO be credited ID MS
account win the assured by tao amount received by
him from the appropriation. There Is. IN fact
no difference ol opinion on these points be found
either iu the English American books, and or Gov
erument tsel! has always acted upon this doctrine OF
suOrOgauOH. Under tie treaty OF 1874 with
England. and under several treaties with
other Powers, the United states have al,
ways claimed that tie underwriters. VINO h4d
fully or partially paid for losses incurred by captures
the treaties provided for were 10 be considered
rs owners IN whole IN part, and entitled 10 paruc
pare IN the indemnity granted. Aruould, a standard
El., writer bis late Work upon marine lhsur nce'
in support o. this principle, refers 20 the dgcl.on
thar wucre underwriters had paid total loss on british
ships capred by the Spdnards they were entitled as
salvage, the proceeds Of spanish SHIPS cap-lreu
u rcpUs1l and distributed OY tne BRUSH GN-
ured. Now, the facts IN relation
10 claims England on account OF the dcts OF
the ALBANIA anu her COu.Orts, when directly pear upon
part of our civil war; anticipating that the COniederates
might vessels and interfere WIN lAo
commerce 0f the United States on the high seas,
owners effected war risks, ana such assurances
were Insured time time, by notice from the
lures We're requested 70 ME their claims. with
whatever proof they might have IN support II
them. Where Insurance had been effected, this
proof consisted OF tne policies OF Insurance ana STATE
mouf amounts respectively pad Uy the Under
writer's During all the ncgOtaiiOus Det Teen the Two
Governments down 10 the signing or Ihe treaty OF
tine Department Ter which tie underwriters had
ulv paid assured, except those He'd by tIe under
writer's themselves, and these "a Well as tht Chains OF
D rites wAo mad not been Insured. constituted the
arbitratOrs were cdll'u upon 10 CuIa',.-l.
IN cannot be doubted therefore, that IN estimating
the aggregate OF the indemnity the losses Tor
which the underwriters had paid entered INTO tlie ccu
fIOu Neither the drbfrltOrs themselves. nor the cOun
a. either Government. tntlmajed that the under
writer's entitled TO represent the owners whose
losses they paid tHat tle assured VINO Aad Dceh
fully PAID by the underwriters, retained any cidl'