The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1908-11-23
HOW SHIPS ARE
sonnet TIMES LOST

''In the last NUMBER says a CORE
spondent in Fairplay of London, 81
referred to "a so-called spotted
steamer having a line, or lines, placed
on her by spectators at 10 guineas
per cent. for six months against the
risk of total loss only, and of ship
per being required. more or less in con
sequence, to pay los. per cent, instead
of IS. I'D. per cent, for a cargo insur-
ance by her. The same informant now
tells me that he has since heard of
another six months total loss insur-
ance being placed on the same steam
err, but this time at 16 guineas per
cent. This is very irregular business,
likely to prejudice the shipowner when
he comes to renew his annual insur-
anee-at, let us suppose, 10 guineas
per cent. against all risks for twelve
months. Underwriters who are on the
Espec.' insurance at 16 guineas per
cent. for six months may demand Is
guineas or more per cent. for the year.
"Clearly a system which comes in
thus upsettingly between a bona ida
shipOwner and his underwriters is ut
terlv opposed to public policy and
should be put down swiftly and stern
" by Lloyd s and the marine COM
panies. 1t is gratifying to learn that
some underwriters now decline to en-
tertain this class of insurance, with
the result that the operators are be-
ginning to find difficulty in placing
their lines. But underwriters should
be united in their action in regard to
this kind of business, for as long as
any of them swallow the large pre-
mium bats the spectators viii prob
ably take full advantage of the 'mar-
ket '-hOwever restricted that market
may be. In other words, it is in the
power of comparatively small group
of underwriters to keep the highly OBJ
jectiOnable system alive-tO the injury
of themselves and their fellow under
writer's in the end, and to that of ship
owners so long as they are exposed to
the gambling practise of the spot
ters
''While sympathizing with the ship
owning sufferers. the case of merchant
shippers must be admitted to be ex-
tremely hard. They take up a ship to
carry their cargo, and expect to have
to pay only the regular current rate to
cover their interest-any advance on
that figure upsetting the calculations on
which they base their contracts-and
find to their surprise, that by reason of
the ship being spotted by a wreck
err they have to pay los per cent in
stead of IS 4d per cent, 20s per cent
instead of Is Cd per cent, and so on.
If shippers have much more of this ex-
perienee they will protest in no meas
ured terms, and the question will soon
become burning one. In view of this
alone underwriters ought
to severely discOuntenance the spot
ters.
"For if those 'dOwny' adventures
should be further accommodated on the
p.p.i. (policy proof of interest) basis,
the authorities would have to step in,
and that would forbode mischief An
would most likely be made to
put stop TO p.p.i. insurance-which
would not suit shipowners and mer-
chants, who have frequently to resort
" pOlIClcS N1OI IcdSOHS dlT0dUy
specified in these columns). The posi-
ton is an ominous one. If underwrit-
ers continue to accommodate the spot
ting fraternity, the authorities will, in
all probability, by penalties or other
devices, declare against p.p.i. insur-
lnces, to the detriment of those who
have to resort to those assurances to
comply with the exigencies of business.
The only way to meet this great risk
S for underwriters to take the matter
INTO their own hands and extinguish
he gambling spoilers by declining
70 have anything more to do with their
transactions. This is the !
course which would be pursued if the |
interests of the marine insurance bust |
ness are to be conserved and promoted |
The 'spOtter' is not worth a thought; |
f anybody should be sacrificed he is |
he man, for, at present, he is convuls- |
ng the market in order to play his |
'wn little selfish game