The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-07-22

pers yesterday practically opened the
betting on the presidential election Of
this year.
The new method Of election betting
owes Its origin to a manufacturer who
felt very confident Of a sharp revival
OF business following the election Of
Taft and was anxious to run his plant
at full capacity in the months preced.
Ing the election, IL only he could pro-
tect himself against the Contingency
OF Bryan's success. In this predica-
ment the manufacturer went to a
firm OF insurance brokers in this city
and asked them for a policy insuring
his business against Bryan's election.
They cabled Loyd's for terms and re-
ceived on hand a quotation Of 20 per
cent, which Is equal to odds of about
to against Bryan. The manufac-
turer considered the rate too high
and yesterday after reflection. Lloyd's
brokers offered to write the policy at
10 1-2 per cent. The offer was ac-
cepted and insurance to the amount
OF more than 100000 was taken at
the quotation named. The manufac-
turer will put all hands to work i'm
mediately.
A Rush for Policies.
Wall street brokers and stock mar
ket operators, hearing Of the policy
taken by the manufacturer, applied
for policies In large numbers yester-
day afternoon. Some of them wanted
the policies as hedge on purchases
or stock, fearing break in the stock
market in the event of Bryan's e,ec-
ton. Others considered the odds in
viting at this uncertain stage of the
and took policies as a pure
wager, either for the reason that there
was a good long chance speculation or
In the expectation Of hedging profita-
bly, on later campaign betting.
The form Of contract. insurance or
wager. comes under the Lloyd's class
ification of commercial hedges. In
this classification 1t Is known in the
parlance Of the International insur-
ance men as "P. p. l." policy-that
Is. policy with proof Of interest. The
contract provides that the insured
must state the estimated loss to him
on particular eventuality. That es-
timated loss is the face Of the policy,
and, according to the strict terms OF
the policy, the insurer may demand
proof Of loss In case Of the happening
OF the particular contingency. The
clause to that effect, however, Is en-
tirely formal and is designed to pro-
tect the contract in accordance with
the English law. AS a mater OF prac-
tice, the contract is as inviolable as
that life insurance contract which is
written "incontestable from date of
ISSUE" An insurance broker who
should refuse to pay the face value
would be treated in the same manner
as the bookmaker who welches at
Tattersalrs.
Quoted I'm Guineas.
The brokers quote the premium in
guineas. A 10 per cent. premium is a
premium Of 10 guineas on the hun
dred pounds sterling. and since the
guinea Is one shilling in exces OF a
pound the quoted rate Of 10 per cent.
Is really a percentage Of 10 1-2 and
the quoted rate Of Is per cent. is a
percentage Of Is "a. The percentage,
at the same time, only indicates the
odds. for the reason that the broker
retains the premiums In the event OF
loss by him. while In ordinary betting
the bettOr's stake as we'll that OF his
opponent goes to the winner. Thus
on contract Of the face value of
$4,000 with premium OF 10 guineas
percent. the insured deposits sos
approximately. or about 20 guineas.
In case Of success he receives the ST.
600 face value, but no more. so that
his net return from the insurance
would be 895. or about 8 1-2 to 1 for
his money. At the closing odds OF the
international insurance market yes
terday, with 15 guineas per cent. as
tho quotation, the odds were approxi-
mately 3-4 to /.
Several brokers we'll versed in
Lloyd's practices, among them two or
three members Of Lloyd's, said that
transactions were the first
In straight insurance-or betting-on
a presidential election. One Of them
recalled making a transaction a bit
similar to the Roosevelt Parker cam