The sun. [volume] (New York [N.Y.]) 1833-1916, 1912-11-10
WAR SCARE
ALARMS US. MERCHANTS
Fear of General HOstilities
, Leads to Inquiry on War
Risks on Cargoes.
AWAIT ACTUAL FIGHTING
London Marine Insurance Men
Doing Considerable Busi-
ness-Rates Low.

Possibility OF the disruption OF the
concert OF Europe and the embroilins
Of the powers in a general war through
the tense situation that has been brought
about in the Balkan crisis. and particu.
larly the disquieting news Of yesterday
morning. was reflected in New York 70
some degree yesterday and has been Of
late in inquiries received by marine in
surance men for war risk rates on cargoes
OF American merchants. The American
shipper is decidedly less ready to 20 in
for war insurance on shipments than the
British or European merchant. until
there Is news Of active preparations or
until hostilities have really commenced.
Therefore. while dispatches from London
reported that heavy insurance business
on cargoes had been recently written
in the face OF the possibility OF general
European complications from the Balkan
situation. the extent Of insurance business
along these lines here has been largely
confined to inquiry for war rates.
OF the amount Of this inquiry against
the possibility Of European war lnsur-
anoe men said there had been consider
able. About the earliest It was heard
was three weeks ago. .Lloyds in London
was closed yesterday because Of the Lord
Mayors Day holiday. Therefore no rate
was quoted there on the general European
war risk insurance. On the local Balkan
war insurance risk. cables from London
showed that insurance rates on cargo to
and from the Seat OF the disturbance
were decidedly stifY against Constanti-
nople. though not moro so than rec entity.
The inquiry on insurance rates against
a general European war has not reached
the point here Of actual business. The
regular marine insurance policy CON-
tains the --F. c. 4 s." clause. which frees
the underwater from responsibility for
capture. seizure and detention and the
consequences thereof. and also from all
consequences Of hostilities or warlike
operations In fear or in time Of war
shippers and ship owners pay an extra
war rate on their insurance policies. from
which this clause is excluded and the
underwater assumes certain RESPONSE
bilitiee for loss due to war. The war
rate is very intricate affair. fixed entirely
according to the individual cargo and
ship and it's destination. 30 that rates
are difficult OF quotation except on very
complete information regarding each
specific cargo or ship. In this country
marine insurance on international busi-
ness is chiefly concerned with cargoes.
Ships are mostly insured in England.
The Balkan war situation. considered
entirely apart from the danger it carries
with it Of involving the great European
Powers. has produced . considerable
amount Of var insurance here on cargoes
destined to Turkey. Greece. the Black
Sea and the zone OF local urbance.
The rate on cargo oar1ed in neutral
ships to the disturbed territory. inolud-
ing the war risk. has been somewhat
more than double the ordinary rate OF
cargo insurance. The present range OF
rates is between three-fourths OF per
cent. and Y, per cent, for ordinary insur-
ance Of this class. Yesterdays cables
from London reported that on neutral
cargoes in neutral ships the rate was
per cent. to ports on the Black SEQ
outside of Constantinople. This has been
the prevailing rate OF late. The insur-
ance rate on cargo to Constantinople.
however. was quoted In yesterdays cables
as l01a per cent.
Insurance rates on contraband cargo,
or qualified contraband. such as food.
clothes. shoes or coal. destined for the
use OF the belligerent army. or on cargo
in Greek or Turkish ships to Che involved
area in the eastern Mediterranean. have
OF course been much higher than the rate
quoted. One insurance man told yes
terday OF q cargo OF arms that went out
from England insured at so per cent.
1t arrived in Turkey safely just "a the
Balkan war started and with the Italian
war still in progress.
II was billed as furniture. pianos and
other innocent merchandise. Barbed
wire 10 now a contraband Of war. An
that his company had refused to insure
cacgoes in Greek ships destined for ports
in the disturbed zone for a period hut
that at present the company was ac-
cepting them at moderate rates. In
London coal cargoes have been refused
by insurance men at rates as high as
2i per cent. offered.
Stimulation Of shiyying business to
the Mediterranean potts Ia looked for by
men in shipping concerns. and an increase
in trade has already been noted, though
it is held that further stimulation should
be more marked. So long as the war
is confined to the present local situation
pointed out that there can be compare
lively little disturbance felt by the world 9
shipping There will be little absorption
OF merchant vessels for belligerent pur-
poses. unlike the Russo Japanese war.
The Balkan States are out OF the world
Of shipping and Turkey Ia OF little figure
as q maritime power. Greece has a
merchant tonnage, pur-
chased from the British second hand.
The fact that this has been commandeered
for navy purposes will advantage British
in the eastern Mediterranean
trade. In London the acoentuated de- |
mand on shipping caused by the war 80 !
far has been strongly noted. very high |
range for ship room Is being paid there. |
A large demand in England for ships to |
make the homeward run with grain car
rom the Black Sea has also been noted.
"DAY OF TURK IS DONE"