New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-05-31
LOSSES IN MARINE ASSURANCE.

A RUNOUS RESULT OF COMPETITION.
WHAT THE EMPLOYMENT OF INDEPENDENT" IN
sPECToRs HAS LED To-BADLY PACKED CARGOEs.
FAULTY INSPECTIONS, AND RIVALRY IN FREIGHT
THE MAIN CAUSES FOR The LARGE AMOUNT OF
LOSSES.
The annual report of the State Insurance
Department recently issued. makes unfavOrgble
hibt OF the marine business. The losses OF
panles are shown to have been as follows for 1873;
Net premiums. i1yl ~
o,-9'o2D %
Net loss Sl6L-O4 Il
The only other company, the Atlantic Mutual, was
more fortunate, showing:
Net premiums lt45ts ~
Losses -fVA- ~
10000 -
1t is considered by marine insurance managers thai
the losses OF last year due principally to the dis
abing, wrecking abandonment OF srain-Iaden YES
sels the falling of in fregts and the necessary
reductions in insurance premiums. The competition IN
Insurance. 1t is said has been brought about by
foreign insurance agencies declining TO enter into any
combination enforce the rules OF the Board OF Under
writers IN regard the inspection Of seagong vessels
and by their accepting instead the certificates Of ill.,
dependent" surveyors who are more liberal in their
rules OF inspection
Since the frat part OF Autumn six steamers and ten
sailing vessels all except OF which sailed from tho
United States, have been missing and insurance agents
have given them up lost. The maritime records also
show that vessels of all kinds have been lost thus
far this year, I4J OF the number for tho
same time IN 1873, involving money loss OF about
S225OOOO 1t is also shown that between November 1.
1873 and February 2l 1879, seventy grainaden ves-
sells which sailed from the United states have become
total partial loss have reached port with damaged
cargoes Two marine insurance companies In this city
have been compelled call in their scrip during the
last year. while another has reduced its capital stock
One-halG.
several causes might be assigned heavy loss
OF vessels during the last six months" said officer Of
the Board OF Underwriters, aside from the unusual
severity OF the weather All the steamers lost except
one were waerbaast vessels. II is believed by many
nat water-baast vessels not Nc for the grancar-
rying trade. They generally crank and 1t Is well
known that gram makes them very unstable. These
vessels load here with the greatest draugh possible for
them without their ballast tanks being filed. They
then found be crank and matter OF safety, tho
water tanks are filed, and the steamers are TOO
low in the water. This could be remeded by
filling the tanks at first, but "a It would
throw out about 200 tons OF cargo, it is not re-
sorted IL very important that proper draughe
should be given to this class OF vessel"
When asked why the insurance companies accept the
Independent inspections, this officer SAID because
they are compelled do by the great rivalry for BUSH
ness although virtually agreeing 10 accept risks
without an inspection Another for the success
Of the grain ceiling companies. II inspector insists
upon certain well established rules of loading. he VIII
not get much support celers The rules OF tho
underwriters require the use Of double shifting boards
To get over this, agents and masters Of
vessels have frequently res0rted TO what is
known az the sinuing' process by using single shift
n boars pt az the top and bottom The result 10
that when vessel rolls evy and the gram bcgius to
shift the shifting boards way, the vessel - unable
to rht herself and mas 10 he abandoned The UNDER
writers Inspectors would not pass sucn ye>se ahd no
insurance could be effected IN board companies
The independent inspectors overlook these de-
feets and readily furnish certificates OF inspection
The shifting OF is not always however, due TO
imperfect inspection The vessels frequently are Loaded
huIriedly at elevators, and they are trimmed by
who have no one TO superntend them"
President Montgomery, OF the Mercantile Mutual Com
vessels In the grain trade the tmpecunOsy OF ship
owners owing competition in reiguts, oadIypdcked
ings. The rules OF the Board OF Underwriters
are nearly perfect, while the ndependent'
surveys are defective aud loose. The competition in
marine insurance mas not 20 much to do with II as Ihe
competition In irelgts except Tor the North Aanuo
business IL Is great here that our company has
gone out OF this branch OF the business"
The president OF another large marine insurance COM
pany said; Tie great cause OF the depression ~ inc
marine business Is the decrease OF remiuns Tue re.
been going for about three years, but
stock companies by reducing the capitai, ana inc
mutual companies ~ calling In OF scrip. The fore gn
insurance companies, OF which there are nov fifteen
doing business IN TINS city, nave stood III Tue ~Bot
united action. We have laDOred unsuccessiuly for
years to get Loyds to join IN movement To ake
risks except ON the Board or Underwritcrs'
survey. They have been writing insurance the very
independent certificates they now complain Of some
OF our home COMPARES nave been tempted 20 follow
the the foreign panes, aud rather than lose
the business they have taken extra hazardous risks on
the certificates or independent surveyors, besides
allowing rebates and commissions. Tue foreign COM
pauies are conducted less extensively than ours are.
They have no pay, and they taking marine
have suffered heavily from the recent losses"