The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-03-24

A decision Of highest Importance, in
a case involving nearly $4,000, which
is of interest especially TO insurance
men and members of the bar. as we'll
as those carrying heavy insurance,
was rendered by Judge Speer in the
United States court yesterday.
The Ocean Steamship Company of
against the Aetna Insurance Company
to enforce the apparent obligation OF
a policy of marine insurance for S25,-
600. This policy was taken by the
Ocean Steamship Company to protect
itself from loss from fire on account
Of a cargo Of merchandise being trans
ported by it on the steamer City of
Macon. 1t appears that it was the
policy of the Ocean Steamship Com
pany, for the purpose of securing ship
ments to issue insured bills of lading''
to its consignors Of freight That por-
ton of the cargo of the steamer for
which bills of lading of this character
had been issued vas of the value of
$S6. 1925, and this sustained a direct
damage from fire in the sum of $751;
1895. In estimating the general aver
age, II was developed that the con-
tribution which the insured bills of
ladtng cargo" must make was s31,
Z242b. This sum was paid by the
Ocean Steamship Company to its con-
signors pursuant to its obligation to
them to insure this portion of the
cargo.
Aetna COmpany's Claim.
The Aetna Insurance Company re-
sisted the claim of the libellant, and
insisted that as the loss was partial
only, that the rule with regard to ma
rine insurance and the terms of this
policy required that the insurance
company should only contribute to-
wards the loss in the proportion that
the amount of the policy, to-wit, $685.
900, bears to the total value of the
cargo, 500, 1925, or in other words that
as the amount of the policy with the
insurance company was about one
fourth OF the value of the cargo, that
1t should bear only about one-fourth
Of the loss, and that as the Ocean
Steamship Company had insured the
consignOrs against loss to the extent
of $4,000. that the latter company
should contribute three-fourths of the
amount of loss sustained. The Aetna
also offered in evidence deposition of
a Mr.. Wallace, an officer of that COM
pany, who is an expert in such mat
tiers, to show that this construction of
the policy was in accordance with the
usage of underwriters.
Questions Considered.
In his opinion Judge Speer stated
that the question whether this deposit
ton could be considered as proper evil
dence, or whether the court should
construe the policy of insurance in ac-
cordance with its clear and unambig-
uous terms, was a controlling conten-
ton in the case.
Judge Speer. in his opinion, discusses
this subject as follows: "A great deal
has been said in the argument with
regard to the looseness and informali-
ty attending the construction of ma
rine insurance policies, and the neces-
sity of admitting testimony to explain
them. Much of this is traceable to a
remark of Mr.. Justice Butler, made in
1871, that such policy has at all
times been considered in courts of law
as an absurd, incoherent instrument;
that it is founded on@usage and must
be governed and construed by usage
This 1t is insisted is as true now as
it was then. The respondent has not
found it difficult to cite from the early
volumes of the Supreme Court excerpts