The Birmingham age-herald., 1914-03-23

achievement consisted in organizing and perfecting a system whereby news from every quarter of the globe, from every bay, could be gathered with the utmost rapidity. By this system the movement of almost every ship no matter where and when she was plying, and under which flag, could be traced. Needless to say, every conceivable description of craft vas ehronicled in Iloyds register, and the ship receiving the hall hark "A. l, Lloyd's," was regarded as having the highest recommendation
 The large room" at Lloyds contains during the busy hours of the day perhaps 5000 people Small square tables. num- berine several hundreds. are arranged 10 accommodate four persons each. Each underwater has gigantic volume in front of him, which he consults from time to time for information on proposed risks. member of Lloyd's is obliged to deposit e5000 with the committee as se- curity. The aggregate does not, how ever. represent one tithe of the fortune possessed by the underwriters, published at times, bear testimony to the immensely profitable nature of the business.
 Underwriting Done Swiftly
 The unde rwritng of a policy for Prac- tically any amount is performed with tho greatest dispatch. As soon as the premium is agreed upon, the document is sent on it's course from table to table, and each man interested signs his name against his proportion of the risk. The wording of the policy is simplicity itself 'Knok ye that we the insurers do hereby bind ourselves. each for his own part ana not one f)r another, our heirs, executors and administrators, to pay or make good to the assured or tc the assured s eXecu- tors etc, all such loss as above stated, not exceeding the sum in all, within seven days after such loss is proved, and that in proportion to the several sums by each of us subscribed against our respective names. In witness whereof we, underwriting members Of Lloyd's. have subscribed our names and sums of money by us insured
 The principal business transacted at Lloyd's is of course, marine insurance, and fully 80 per cent of the underwriters refuse on principle to touch any other form of risk. There is, however, stead fly growing number who are prepared for any class of business, and who are not always too particular and careful in the selection of extra hazardous propositions.
 A profitable business at Lloyd's is that
 in overdue or abandoned vessels. quota tions runs from per cent sometimes to 95 per cent, and have at times proved very profitable to the layers of the odds.
 Principle of Business
 The principle of I.loyd's is in reality In opposition to the true principles of insur- ance, the prices being known as "hedg-
 ing A private individual being subject to the chance of fire bets the amount or his annual premium that his property will be burned within year. An insur- ance company bets that the fire will not happen, and guarantees to pay for the dan age if it does. The individual escapes from uncertainty to certainty. The insur- ance company, on the other hand. While relieving individuals of uncertainty. in- CUTS no uncertainty, because 1t obtains the benefit of the law of average. By un- dertaking very large number of risks, an insurance company puts itself in the same position as a man who buys all the tickets in lottery. While unable to reap the large profit which might accrue to the holder of single prize ticket, the insurance company because 1t ex- periences average results, is freed from the happening of very heavy losses. Some critics, attacking the system prevailing at Lloyd's, urge as one of the principal objections that people who insure with underwriters walk by faith and not by sight In the case of an insurance com pany there are published accounts. but in the case of underwriters neither the com
 mittee of Lloyd's nor the public know anything whatever about the liabilities or the means or meeting tneHi.
 l Despite various suggestions for pub licity Lloyds adheres to it's old and we'll tried methods, and the probity and integ- rity of its members and system have never been questioned The enormous losses of which we read, catastrophes of so terrible a nature as the sinking of the Titanic, are met with promptitude and apparent equanimity. However painful the effect may have been on the re- sources of the underwater, the outside world never knows of it. The solvency of Lloyd's as body is unquestioned, and through many severe tests it has re- mained the great marine insurance house of the world.