Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1898-09-01
A MARINE MONOPOLY.
HOW ENGLAND MAINTAINS HER
SEA SUPREMACY.
No American Ship Can Obtain from
the British Lords Classification
and Rating as Favorable as Those
Accorded to British Vessels.
In Foreicners, Hands.

In Foreigners Hands.
Marine insurance as closely follows
the carrier of goods as trade follows
the flag borne by the ship. This is con-
clusively shown by the history of ma
r:ne underwriting in this country.
In the early days of the republic,
when our merchant marine was ade-
Quately protected by the imposition Of
discriminating duties, and when, there
by, the American shipbuilding industry
prospered, American marine under
writing f1ourished. There was little or
no competition in the market for
freights; therefore these were cOmpar-
atively high. At the same time profits
on goods were large, and ship-owners
could well afford to pay full rates fer
Insurance, while shippers of goods
found no fault with the high rates of
underwriters who guaranteed the safe
delivery of the cargo.
The marine insurance companies do
ing business in New York City in 1858
numbered thirteen, having in aggre-
gaze LAA VI spAO,OOO,OOO. L lie CO1lA-
merce of the country was comparative
~ large, and it had grown from about
$2OO,O0O,OOO in 1888 to $685., 100000
twenty years later. This capital Was
ample for the safe conduct of the bust
ness, and large dividends were paid by
all the companies. These profitable con-
ditions did not attract competition Of
foreign insurance companies, however,
mainly for the reason that there had
not, at that time been much competi-
ton in the carrying trade though for
eign carriers were gradually forcing
their way into the oversee field by
means of their iron steamers.
The outbreak of the war of the rebel
lion gave the foreigners their long
sought opportunity. American shipping
was practically driven from the sea, the
ocean carrying trade was secured by
Europeans, and agencies of foreign in
surance companies followed the foreign
Atlantic ports. Gradually American
underwriters We're forced out Of the
business, and to-day there is but one Of
these marine insurance companies in
existence in New York City, and only
five, and these of small capital, in other
Atlantic ports.
Almost the entire business Of marine
underwriting is now done through
agencies of foreign companies. Though
the commerce of the country has enor
mously increased, being nearly quad
rupled in forty years, yet the capital of
these foreign companies invested in
this country, is only about $1,000, 900,
this being the aggregate amount of de-
posts required to be made with the in
surance department under the State
laws. The capitalization Of the parent
companies is unknown, no statement Of
such capital being published, and,
therefore, these foreign organizations
pay only small taxes here for the privi-
lege of doing business in this country.
The facilities for instant cabling enable
these foreign agencies to take enor-
nous lines of insurance, distributing
the lines among the various parent
companies, and in this way the risks
are actually underwritten abroad.
1t will be seen at a glance that COM
petition by American companies, did
these companies exist in sufficient num-
Der to attempt to compete, would be
almost impossible, and until conditions
shall materially change there will be
little incentive for American capital to
engage in marine underwriting.
The spectacle is presented to-day Of
our ocean carrying trade being almost
wholly in the hands of foreigners who
are receiving fully $3OO,00O,OO annually
for the transportation of our imports
and exports. Foreigners are also I'M
derwriting almost every ton of the
goods carried, besides taking risks upon
every ship engaged in the traffic. They
contribute scarcely anything in the
form of taxes for the privilege Of con-
Quoting their business and they vigoP-
ously resist every attempt which Is
made to require them to bear some por-
ton Of the expense of maintaining IA
cilities for their shipping.
The remedy for this disgraceful con-
dition of affairs seems to be the imposi-
ton Of discriminating duties against
goods carried in foreign ships. If this
remedy should prove effective it would
tend to stimulate the growth Of our
American marine, and in that event in
surance would most assuredly follow
the carrier, successful competition with
THE WILD WAVES HA