The daily morning journal and courier., 1903-09-03
LLOYDS OF LONDON.
FEY UNDERSTAND JUST WHAT
 THE FUNCTIONS

Of ths TTansaetions are Done on
 Honor, Yet FaIIurss arc "a Rare
 Thing.
 London, August 7.-There are few great commercial institutions better known all over the world than the famous Lloyds. The oriental sailor, the Australiasian mariner and the men who go down to the sea in ships from the South American coast all have heard of Lloyds and have a fairly accurate knowledge of it's intents and purposes.
 Yet one of these, not even one of the most intelligent and most experienced mariners sailing the blue Atlantic. has any knowledge of what the association is and does. The ordinary public has more hay idea of it's work. The pulp lie has an idea that the company sur yeys and cIassifies vessels. and even this is incorrect.
 The Lloyds corporation has nothing to do with classifying ships, a business which is conducted only by an allied but distinct organization kiown as Lloyds Register of British and Foreign Ship ping. The rooms occupied by Lloyds' are above the Royal Exchange, while Lloyds Register is in the Fen-church street. many blocks away.
 Many persons, including seafaring men. imagine that Lloyds is an in- surance concern, but they are wrong again. The members of the corpora ton deal extensively in insurance, but the companly itself has nothing to do with it except that it is a guardian of the interest Of it's members.
 More than 200. years ago brokers and underwriters concerned in the shipping business met in a coffee house owned by Edward Lyon who placed rooms at their disposal. Here they ate and talked over business, and many of them had no other office. Lloyd now pro- vides rooms where the business of the members can be conducted.
 It was the innkeeoer who really formed Lloyds. He was a most pro- gressiye man, and dealing almost ex- clusiyely with men who were interested in the shiping business, he did every thing possible to help them along.
 He worked and organized a corps of correspondents all over the world, who kept his place supplied with the latest marine intelligence. This was for the free use of his customers. The corporation of Lloyds now does the same thing. The difference between coffee house and the present corporation is merely one of degree,
 The subscriptions and dues of the company go to support signal stations on the coast and to pay the agents in every part of the word. The news from these corespondents is first posted in the Room and is then printed in Lloyds' List. which is now issued as a part of the Daily Shipping and Mer- cantile Gazette. So it will be seen that the main function of the corporation is to provide first news of shipping and to
 s;a ts central place for the meet ing of its members.
 Another function is, perhaps, one of its most Important duties, and that is to look out for the interest of it's members. As there is much valuable business transacted between its members the corporation $ careful who Is admitted. No one can become an underwriting member unless he deposits s25,000 in cash or approved security with the treasurer. This he can call upon when he resigns or gets in financial straits,
 Generally speaking the corporation acts as a, benevolent guardian, but the Insurance business, for which it's mem- bers are noted all over the world. is done exclusively between individuals in 5 the corporation. The company has no responsibility and has no control over 1t. The governing committee does not even have the power to make rules to control transactions and has no disci- plinary powers at all. All these rest in- dividualy with the members.
 The members of Lloyds may be divi- < ded into classes, insurance brokers and underwriters, but there is no hard and fast rule of division. An underwriting member may act as broker if he likes and often does. but broker may not act as an underwater unless he has been admitted to the grade and made the necessary deposit. Comparatively few of the underwriting members actu- ally transact insurance, as the busi-. ness is highly technical and needs the training of a lifetime.
 What they do is to lend their names to one or other of the authorized un- derWriters who acts for them and for the other '.names'' on his list Some of the big underwriters at Lloyds write in as many as twelve or fifteen names, that is to say, they have the capital of twelve or fifteen members behind them, and are authorized to accept risks in the names of these members as well as in their own. This system of syndica- ting names puts great power in the hands of comparatively few under writers, and those authorized who have several Thames" on their lists have most chance of doing a large business
 The broker is the intermediary be- tween the s1lipowner, shipper, or other person who desires insurance. and the underwater. and as only members and certain other authorized persons are admitted to L1oyds' all the business must come through brokers. The insur- ance brokers must have offices near LIoyds and are obliged to keep large numbers of clerks to do all the compli- cated work involved in placing insur- ances and settling claims.
 The underwater who is not also a broker, has no office at all. All he needs is seat in Loyds' and space for one or two clerks. The details of his business are largely done by the