Evening star., 1911-01-15
Gambling at LIoyd's
on a Royal Birth
cial Correspondence of The Star.

LONDON. January 5. 1911.
WI HEN the story was printed in
w number OF London newspapers a
few days ago that an interesting
event was expected in the royal family
some time this year ii was accepted gen.
orally as true. and even the official denial,
which usually follows such announce
ments, didn't cause any one to have any
serious doubt about it. Now, however
there Is story going round the city that
the rumOr was started by q number of
shrewd insurance brokers at Lloyd's who
saw in it the chance to make lot of
money.
/ Whether the insurance brokers are
guilty or not. 1t is certain that they have
not failed to take advantage of the situa-
ten insurance for many hundreds of thou
sands OF dollars at the handsome
premium of 30 per cent against the post
ponement of the coronation on account
of a birth in the royal family. Such q
postponement would mean heavy loss to
thousands of London tradesmen who are
now making arrangements for the goods
required for the festivities. and they thus
may be said to have legitimate insur-
able interest. 1t doesn't matter to the
brokers on Lloyd's. however, whether
there is any insurable interest or not
They will write risk on any imaginable
combination of circumstances if only the
premium offered is high enough to tempt
them.
They were hard hit when the late King
Edward died His Illness was SO unex-
pected and the medical bulletins for the
first day were SO hopeful that the brokers
accepted risks at a premium as low as
10 per cent. One enterprising American
storekeeper in London had a large stock
of prayer books containing the prayer
for King Edward OF course. these be-
came unstable as soon as King George
ascended the throne. but the storekeeper
had them insured al 10 per cent pre-
MUM on the first day of the kings ILL.,
ness, and he made handsome profit by
the transaction. He had also been
stocks of black goods in the market, and
he insured them, too, against the event
OF the kings recovery. He lost his pre-
MUM on that transaction, but he made
1t up In profits on the sale oe the goods
The other day a man was expecting
an event of the kind which the king is
now said to be looking forward to. Some
OF his friends chaffingly suggested that
1t might be twins. He went off to
Lloyd's on the spot and Tor 5 per cent
premium obtained a policy for So ZOO. pay
able in case OF double event Sure
enough. the twins arrived on time and
Ho 6ot his $o,OOV An once mate who
envied his luck was expecting similar
event and tried to secure a policy paw
able in the even: OF the baby having blue
eyes. The brokers were quite willing TO
write the policy, but they wanted so per
cent as d premium. and the prospective
rather declined the gamble When the
baby was born with blue eyes he invited
all his friends TO kick him.
Many people think that Lloyd's is a
company or q firm, but they are wrong.
It really doesn't exist at all. or If IT
has any existence IL is corner of
the rotunda OF the Royal Exchange
where the insurance brokers gather to
do business. They used to meet in {.
coffee tavern kept by man named
Lloyd and the name has stuck to them
ever since. Ship brokers and owners
used to meet in the same place, and
from this fact also springs the title of
Lloyd's register OF shipping and the
famous Lloyd's system OF reporting
ships. The famous captains room at
LlOyd's" is now In the basement Of the
Royal Exchange.
OF course. a lot of the insurance |
business done at Lloyds is perfectl3
legitimate, but q lot OF it Is pure gam
bling. No broker has the actuarial CAL
culations at his finger tips OF the prob !,
ability Of twins being born. SO that any |
premium he may quote Is just bet. In
the same way race track gamblers |
selves at Lloyd's against loss. 1t Is |
difficult to see how the broker who |
takes a risk OF this kind differs from |
an ordinary bOokmaker. A couple of |